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GST on construction service, Goods and Services Tax - GST

Issue Id: - 118214
Dated: 4-11-2022
By:- V Rajalakshmi
GST on construction service

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An individual engages the builder to construct 6 flats on his land and proposes to sell 3 flats before the completion of the construction. The query is what is the tax rate to be adopted by the individual for the proposed sale of a flat? Whether 5% on the whole consideration or 18% on the construction value and avail an ITC charged by the builder to the seller.

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Showing Replies 1 to 3 of 3 Records

1 Dated: 8-11-2022
By:- Amit Agrawal

GST @ 5% is payable on whole consideration for the flat, without any ITC.

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.


2 Dated: 11-11-2022
By:- Shilpi Jain

Assuming this transaction is on or after 01.04.2019 - 5% will be applicable for the residential flat


3 Dated: 11-11-2022
By:- V Rajalakshmi

Thank You Amit Agrawal JI and Shilpi Jain Ji for the prompt reply. Another follow-up question is whether RCM will be applicable for the 3 flats which are not intended for sale.


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