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Rate on construction contract in JDA, Goods and Services Tax - GST

Issue Id: - 115483
Dated: 2-10-2019
By:- deepak gulati
Rate on construction contract in JDA

  • Contents

Dear Expert

What will be the applicable GST rate in case of construction of residential building where one floor is awarded to builder against consideration of such construction services:-

1) 12% - applicable to single residential unit

2) 18% - residual rate

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Posts / Replies

Showing Replies 1 to 5 of 5 Records

1 Dated: 3-10-2019
By:- Himansu Sekhar

It is 18%

2 Dated: 3-10-2019
By:- deepak gulati


can you please elobrate the reasons for 18%

3 Dated: 3-10-2019
By:- Himansu Sekhar

Please refer to sl

No.11 of the faq issued vide f.No. 354/32/2019-TRU dated 07.05.19 whete in the rates are provided.

4 Dated: 4-10-2019

The querist is talking of applicability of GST rate @12% or 18% to single residential unit in the scenario explained by him. I am also of the same view as explained by Sh.Himansu Sekhar Ji.

It is a barter agreement between the two persons. There is no difference between 'cash' and 'kind' regarding the receipt of consideration. When 100 flats are constructed by any construction company, neither lower rate nor exemption is available to single(individual) residential flat except the various options given in F.No. 354/32/2019-TRU dated 07.05.19 affordable/non-affordable etc. The same analogy is applicable here. Single individual residential flat (unit) cannot be segregated for the purpose of benefit of lower rate of GST.It is a business and will be taxed cumulatively. The element of 'individuality' (individual/single unit) is lost/absorbed in the construction of more than one flats.

5 Dated: 14-11-2019

The following decision of AAR, Karnataka reported as 2019 (30) GSTL 371 (AAR-GST) is relevant here. Applicant : Teamview Developers LLP (Advance Ruling No.104/2019 dated 30.9.19) = 2019 (10) TMI 1020 - AUTHORITY FOR ADVANCE RULING, KARNATAKA


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