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?

[Sadanand Bulbule]

Refer the following:

2025 (4) TMI 549 - KARNATAKA HIGH COURT - M/S. ROHAN CORPORATION INDIA PVT LTD., VERSUS UNION OF INDIA, THE COMMISSIONER OF CENTRAL EXCISE & CENTRAL TAX (GST) MANGALURU, THE ASSISTANT COMMISSIONER OF CENTRAL EXCISE & CENTRAL TAX, MANGALURU, SHRI SANJAY KUMAR MISHRA, LIQUIDATOR FOR LOTUS SHOPPING CENTERS PVT. LTD., THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES MANGALURU.

 

 

[Shilpi Jain]

First case 18%, 

2nd case if only supply of labour 18% but if services by way of pure labour contracts of construction, erection, commissioning, or installation of original works pertaining to a single residential unit otherwise than as a part of a residential complex - 0%

3rd case - possibility of 5%.