GST rate Clarification for Single Residence work, Goods and Services Tax - GST

[Thevarkonda Suresh]

sir

My Query is my client (Registered with GST)is doing contract work for Construction of Single Residence construction work with Material and labour (ie old house will be demolished and new single residence will be built) Query what will be GST rate either 5% or 18% and also any Inputtaxes can be claimed from registered suppliers like supply of sand, bricks, cement, and Electrical and Plumbing items etc . Experts advice Please

Posts / Replies

[Shilpi Jain]

This person is not a promoter. He is like a works contractor. 18% would be applicable with ITC.

[KASTURI SETHI]

You have mentioned as "Old house will be demolished.".

Demolishing is a service under SAC 995431.

This aspect has to be taken care of.

[Padmanathan KV]

The works contract will be taxable at 18% and he shall be eligible for ITC. 

Ld Kasturi Ji,

Won't the demolition be part of the composite supply, the predominant supply being works contract? 

[KASTURI SETHI]

Sh.Padmanathan Kollengode Ji,

Yes. Demolition will be covered under composite supply.