GST on Construction & realestate

[Sangeetha D]

GST Implications for Construction Contracts and Property Sale - Comprehensive Query

Background:
Mr. A is an engineer undertaking individual house construction projects under different business models:

Case 1: Works Contract (Materials + Labor)
• Purchases all construction materials in his name
• Charges clients per square foot.
• Q: Is this service taxable or exempt under GST?

Case 2: Pure Labor Service (Client Supplies Materials)
• Only provides construction labor
• Client supplies all materials
• Q: Is this service taxable or exempt under GST?

Case 3: Land Purchase + Construction + Sale
• Purchases land in his name
• Constructs complete house 
• Sells completed property
• Q: Is this service taxable or exempt under GST?

AI Summary

GST Rates Vary Widely for Construction Contracts Based on Service Type, Material Purchase, and Land Sale Specifics A discussion forum explores GST implications for construction projects across three scenarios: works contract with material purchase, pure labor service, and land purchase with property construction and sale. Replies indicate varying tax rates ranging from 0% to 18% depending on specific contract characteristics and service type, with tax treatment contingent on contract structure and nature of services provided.