To reduce GST rate on construction of metro and monorail projects (construction, erection, commissioning or installation of original works) from 18% to 12%. To levy GST on the small housekeeping service providers, notified under section 9 (5) of GST Act, who provide housekeeping service through ECO, @ 5% without ITC.
What will be the GST tax rate for works contractors doing government works?
The tax on construction activity, including composite work contracts, was 18% under GST. However, Finance Minister Arun Jaitley announced after the GST Council meeting on 05th August, 2017 and 09th September, 2017 that government works contract, for both Centre and states, will attract 12% GST with input tax credit.
What is GST rate for Works Contract?
The GST rate for Works Contract falls under service as per GST Act. or GST rate is 18% for services. GST rate on works contract depends on the nature of services which will be provide. Most of the services under works contracts are taxed at the rate 12% and 18%.
Do you have to pay GST if you earn under 75000?
Currently, it’s mandatory to register for GST if you expect your annual turnover to be $75,000 or more.
What is the GST rate for construction materials?
Most construction material, capital goods and various input services used in buildings attract 18% GST, while cement is taxed at 28%. Plus, 12% GST is levied on under construction property, including on “ready-to-move-in” flats where completion certification has not been issued at the time of sale. Jan 3, 2019
How much GST Do contractors pay?
The problem is due to what they call a discrepancy in GST rates for contractors and subcontractors. While the government has fixed 18% GST for under-construction properties, it has allowed deduction of land value by the developer, making his effective tax rate 12%. But the subcontractor has to pay full 18%.
Is RCM applicable on works contract under GST?
It may be noted that the service tax under the RCM, has to be paid by way of cash or bank payment and the liability cannot be discharged by way of debit to the Cenvat (input tax credit) available to the developer. However the service tax paid under the RCM can be availed as input tax credit by the developer.
Do contractors get taxed more?
and the “employer,” accordingly, they are liable for the entire 15. 3% of employment taxes. For this reason, contractors generally have a higher overall tax burden than employees. Contractors would pay more taxes, but not more income taxes.
Does annual turnover include GST?
Turnover, in common parlance, means value of a business over a period of time. Hence, aggregate turnover for GST includes supplies of goods or services, supplies exempt from GST and exports. Dec 9, 2017
Can I charge GST if I am not registered?
The threshold for registration for GST is $75,000. If you are not registered for GST your invoice must not say Tax Invoice and just say Invoice. You do not charge an extra 10% on top of your services, that you collect and pay onto the government and you cannot claim the GST paid on items you buy.
What is GST exemption?
An exemption is an amount that can be directly transferred to grandchildren or into a generation-skipping trust for the benefit of grandchildren without incurring a federal GST. The GST shares the same lifetime exemption as the federal estate and gift taxes, and that exemption is pretty significant as of 2018.
What is GST rate on new property?
The government has made buying homes easier by slashing the Goods and Services Tax (GST ) tax on under-construction properties. Rates have been cut from 8% to 1% for affordable homes and from 12% to 5% for regular units. Mar 4, 2019
What is GST rate in real estate?
GST on real estate : What it means for you. Before the February GST Council meeting, the GST on real estate was 12% with input tax credit and for affordable housing it was 8% with input tax credit. Input tax credit is the credit on the material used for the project.
Is GST applicable on house construction?
Properties, where the construction has been completed, attract stamp duty, not GST. Hence, ready properties that have received the occupancy certificate (OC) do not attract GST. The GST Council’s decision will benefit buyers who are currently on construction -linked payment schemes.