International Journal of Management (IJM)

Source ID:00000011
Volume 11, Issue 11,November 2020, Pages 1300-1307, Page Count - 8

GOODS AND SERVICES TAX ON CONSTRUCTION BUSINESS

L Dhanasekar (1) C. Vethirajan (2)

(1) Ph.D. Research Scholar, Department of Corporate Secretaryship, School of Management, Alagappa University, Karaikudi, India.
(2) Professor and Head, Department Corporate Secretaryship, School of Management, Alagappa University, Karaikudi, Tamil Nadu, India.

Manuscript ID:- 00000-08121
Access Type : Open Access
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Cite this article:L Dhanasekar,C. Vethirajan,  Goods And Services Tax On Construction Business, International Journal of Management(IJM), 2020, 11(11), PP.1300-1307

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Abstract

Goods and Services Tax was introduced on 1st July 2017 and it replaces various indirect taxes at Central level as well as State level. Real Estate industry is one of the important industry for economy growth and interaction of general public at large. At the time of introduction of GST , the rate of tax for construction business is 12% and 18%, after the various representation from construction industry the rate of tax is reduced to 1% and 5% for residential building with effect from 1st April 2019 with certain conditions.

The Construction activities has been divided into three category namely

1. Construction Contract for Construction of Commercial or Residential building.

2. Sale of Residential Flats by builder to general public or buyer.

3. Construction of Residential building under Joint Development Agreement. The tax liability and point of tax in the hands of construction industry or builder on above category of construction activities is analysed and explained in detail with simple example.


Author Keywords
Goods and services tax (GST) Central GST (CGST) / State GST (SGST) / Goods and Services tax Council (GSTC) / Reverse Charge Mechanism (RCM)/ Input Tax Credit (ITC)/ Joint Development Agreement (JDA).
Index Keywords
Tax liability Rate of tax

ISSN Print: 0976-6502 ISSN Online: 0976-6510
Source Type: Journals Document Type: Journal Article
Publication Language: English DOI: 10.34218/IJM.11.11.2020.123
Abbreviated Journal Title: IJM Access Type: Open Access
Publisher Name: IAEME Publication Resource Licence: CC BY-NC
Major Subject:Social Sciences and Humanities Subject Area classification: Economics, Econometrics and Finance
Subject area: Economics and Econometrics Source: SCOPEDATABASE