GST Reverse Charge in Civil Construction: An Essential Guide

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Contracts and Subcontracts

Reverse charge GST applies in cases of contracting and subcontracting of civil construction works as long as these involve activities such as construction, reconstruction, alteration, repair, maintenance or demolition of buildings.

Transmission of Unfinished Properties

When unfinished properties are transferred by the property developer, the purchaser assumes responsibility for self-assessment of GST. This scenario aims to avoid tax avoidance associated with the sale of properties during the construction phase.

Relevant Advances

The reverse charge also applies to advances received before delivery of goods or services. This aspect is important, as it anticipates the payment of GST, ensuring effective taxation at the appropriate stage of the transaction.

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