Question
1) Full details of GST role in Builder and Developer Business. 2) Full details of GST TDS.
Answer
1. In case of Builder if he is selling flats and
received entire consideration after completion or after first occupation then
there will be no Tax as per schedule III clause 5 it is neither supply of goods
nor supply of service and if he supplies on this kind of service then does not
require registration.
But if he is selling flats and received consideration before completion or
before first occupation as per clause (b) of paragraph 5 of Schedule II then tax
will be charged as follow :-
Notification No. 11/2017-Central Tax (Rate)
| 3. Heading 9954 |
|
|
(i) Construction of a complex, building, civil structure or a part thereof,
including a complex or building intended for sale to a buyer, wholly or partly,
except where the entire consideration has been received after issuance of
completion certificate, where required, by the competent authority or after its
first occupation, whichever is earlier. (Provisions of paragraph 2 of this notification shall apply for valuation of this service) |
9%/18% |
(Reply dt.18/12/2018)