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WORKS CONTRACT, Goods and Services Tax - GST
REGISTERED WITH RERA- VILLA HOUSE TYPE APARTMENT CONSTRUCTIONS - IF THE PROMOTER/BUILDER APPOINTED A UN REGISTERED SUB CONTRACTOR FOR PURE LABOUR FOR CONSTRUCTING THE HOUSES- WHETHER GST PAYABLE UNDER RCM OR NOT? THE BUILDER IS PAYING TAXES UNDER Notification No. 3/2019, 1 OR 5% - PLEASE CLARIFY
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Exemption is available for the below entry
Services by way of pure labour contracts of construction,erection,commissioning, or installation of original works pertaining to a single residential unit otherwise than asa part of a residential complex.
Presently the construction is done for a residential complex. So no exmeption and no reduced rate of tax. Liability @ 18%.
Assuming that your project falls Residential Real Estate Project (RREP)/ Real Estate Project (REP) since you are paying tax under Notification No 3/2019 @ 1%/ 5%, it may be noted that one of the conditions specified in the Notification is as below:
Provided also that inputs and input services on which tax is paid on reverse charge basis shall be deemed to have been purchased from registered person;
Provided also that where value of input and input services received from registered suppliers during the financial year (or part of the financial year till the date of issuance of completion certificate or first occupation of the project, whichever is earlier) falls short of the said threshold of 80 per cent., central tax shall be paid by the promoter on value of input and input services comprising such shortfall at the rate of nine percent on reverse charge basis and all the provisions of the Central Goods and Services Tax Act, 2017 (12 of 2017) shall apply to him as if he is the person liable for paying the tax in relation to the supply of such goods or services or both;
Correction - Please read second last para in the above post as under: