Construction is one of GST’s most intricate corners: works contracts, land value deductions, credit restrictions and rate differences by project type all collide.
What makes construction different
- Works contracts (composite supplies of goods plus services) are treated as services with their own rate structure
- Land component: where property sale includes land, a notified deduction applies before computing tax
- Under-construction vs completed: sale after completion certificate is outside GST; before it, GST applies
- Credit restrictions: developers under concessional residential schemes largely forgo input credit as per current rules
For contractors and subcontractors
Rates can differ by the nature of the project and the recipient (government vs private). Getting the classification wrong on a long project compounds into a large exposure — classification deserves professional review before bidding, not after.
The paperwork that saves you
Running accounts bills, clear contracts specifying tax treatment, and reconciliation between certified work and invoices raised keep both the client relationship and the department satisfied.
We advise builders and contractors on structure and compliance — book a consultation.
