GST for Builders

Question

Dear Tax Clinic team:

Please answer two questions:

1) How much GST is applicable on Builder services (residential and commercial) who purely do construction for others (with material) and have no ownership of land?

Also, regarding input tax credit, should ITC be reduced from applicable GST while preparing bill for the client?

2) How much GST is chargeable on job work of mild steel products? e.g. rough forging is provided by client and is returned after machining and finishing the product.

Thanks.

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Abhi 4 years 1 Answer 372 views 0

Answer ( 1 )

  1. 18% GST would be applicable on works contract services because in your case you will provide services in relation of construction of  (residential and commercial) who purely do construction for others (with material) and have no ownership of land due to supplies without land is treated as works contract services under gst regime.

            Input tax credit available on works contract services

    yes, you can avail ITC on materials or other taxable input for providing works contract services.

    18% GST would be applicable on job work other than textiles and newspapers.

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