Preface

Under the GST regime, taxation of construction industry is one of the  most prevailing issues for Builders, Contractors, Developers and Land Owners. This is so because unlike the pre-GST taxation regime, wherein a composite contract was being birfucated into goods portion (for levy of Value Added Tax) and service portion (for levy of Service Tax), now under the GST regime, construction of immovable property as well as works contract is regarded as supply of service and is chargeable to GST at the rates prescribed under S.No. 3 of Notification No. 11/2017-Central Tax (Rate), dt. 28-6-2017. However, GST paid on inward supply of goods or services is allowable as set-off from the output tax.

Since the introduction of GST with effect from 1-7-2017, various amendments have been made in the GST rates applicable to construction industry and works contract services. Further, with effect from 1-4-2019, a new scheme of taxation of construction of apartment services and real estate transactions has been notified.

The present Book has been written with a view to providing an overview of levy of GST on construction services, works contract services, services by builders and developers, Land Development Agreements, tranfer of Transferable Development Rights (TDRs) Renting and Leasing of Immovable Property and other Real Estate Related Services.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

For the sake of better presentation, the book is divided into five parts, as under :

Part I

:

Overview of GST Law

Part II

:

GST on Construction Services, Works Contract, Builders, Developers, Land Development Agreements and Real Estate Related Services

Part III

:

Input Tax Credit vis-a-vis Contruction Services  and Works Contarct

Part IV

:

Important GST Procedures

Part V

:

Appendices

Part I of the Book provides an overview of Basic Concepts of GST viz. Levy and Collection of Tax, Meaning and Scope of Supply, GST on Composite and Mixed Supply, Place of Supply, Reverse Charge Mechanism, Value of Taxable Supply, Tax Deduction at Source, etc.

Part II is the heart of the book which deals with the entire scheme of levy of GST on Works Contract, Real Estate and Construction Services. It comprises separate Chapters on GST on General Construction Services, GST on Construction of Single Residential House, GST on Construction of Residential and Commercial Apartments, GST on Works Contract Services and GST on Land Development Agreements, GST on Renting of Real Estate and GST on Services by or to Government or Local Authority.

Part III of the Book contains detailed commentary on availing and utilisation of Input Tax Credit by the suppliers of construction and works contract service. 

Part IV deals with procedural aspects under the GST regime i.e., Registration, Returns, Payment of Tax, Accounts and Records, etc.

FAQs on Real Estate issued by the Central Board of Indirect Taxes, have been reproduced in the Appendix part of the Book.

To sum up, the book covers the entire gamut of the scheme of taxation of works contract, construction services and real estate transactions under the GST regime.

I believe that this Book will be extremely useful for practising Chartered Accountants, Indirect Taxes Executives in Industries and GST Practitioners dealing in the Works Contract Services, Construction Services and Real Estate Transactions.

Each chapter of the Book contains a detailed commentary on the related subject-matter. The object behind this is to provide the readers complete details relating to a particular topic under the GST law.

Notwithstanding the best of our care, the likelihood of certain shortcomings having crept into this book cannot be ruled out. We, therefore, solicit creative feedback from our esteemed readers to bring to our notice any mistakes, errors, omissions or discrepancies, as and where noticed by them.

JODHPUR

CA. SATYADEV PUROHIT

1 MARCH, 2022

 

MAHASHIVRATRI