Description
Taxmann GST on Works Contract & Real Estate Transactions Edition 2024 by V.S. Datey
This book discusses the complexities of taxability concerning works contracts and real estate transactions under the GST regime. Spread over twenty detailed chapters, the book provides an exhaustive analysis starting from:
Transactions relating to real estate covering the GST implications on the sale of developed plots
Services by housing societies
Intricacies of real estate services for both residential and commercial apartments
It addresses specific scenarios for various types of real estate projects, such as:
Reverse Charge Mechanisms
Input Tax Credit Provision
Valuation Methodologies
Each topic is systematically broken down in the following manner:
Detailed Sections on Background Information
Definitions
GST Rates Effective from April 2019
Special Cases, such as exemptions and concessions for services related to government projects
This book is intended for tax professionals, legal experts, and business owners in the construction and real estate sectors. It offers an understanding of managing GST compliance and maximizing fiscal efficiencies through strategic GST planning.
The Present Publication is the 9th Edition | 2024 and has been amended upto 25th March 2024. This book is authored by V.S. Datey and covers the following:
Basics of GST
Background and Key Concepts
Introduction to the Goods and Services Tax (GST), including its background, broad definitions, and rates
Details on the GST Compensation Cess, the concept of 'deemed sale', and the taxation powers of district councils
Explanation of the Goods and Services Tax Network (GSTN) and frameworks for inter-state transactions like IGST and UTGST
Descriptions of the Central GST Act (CGST) and State GST Act (SGST)
Taxable Event in GST
Definition and understanding of what constitutes a taxable event under GST
Discussion on what qualifies as 'supply' under the GST law, including scenarios where no consideration is involved
Differentiations between goods and services in various business contexts and exemptions
Explanation of tax liabilities in cases of mixed and composite supplies
Classification of Goods and Services
Overview of the need for classification and the use of the Harmonized System of Nomenclature (HSN)
Discussion on classification conflicts and general interpretative rules (GIR) in tariff classification
Valuation of Taxable Supply
Methods to determine the transaction value for goods and services, including considerations of subsidies, discounts, and related-person transactions
Details on various valuation methods, including cost-based and margin schemes
Input Tax Credit (ITC)
Explanation of the core provisions of ITC and the conditions under which it can be availed
Specific guidelines on blocked credits and circumstances where ITC cannot be claimed
ITC in Mixed Supply Contexts
Details on apportioning ITC when used for both business and non-business purposes
Special provisions for banks and financial institutions regarding ITC
ITC – Other Issues
Various considerations around ITC for capital goods and changes in business structure like mergers or sales
Input Service Distributor (ISD)
Functions of an Input Service Distributor and procedures for the distribution of credit
Requirements for ISD tax invoices and monthly returns
Place of Supply Rules
Importance and determination of the place of supply for goods and services affecting GST liabilities
Specific rules for different types of services, including immovable property-related services, event-based services, and transport services
Time of Supply
Rules determining the time of supply, which dictates when GST becomes payable
Various scenarios and their implications on the timing of GST liability
Reverse Charge Mechanism
Explanation of the reverse charge mechanism where the recipient is liable to pay GST
Details on specific cases and procedural aspects under the reverse charge
GST Procedures
Comprehensive details on GST administration, registration requirements, and compliance procedures
Information on tax payments, electronic ledgers, and returns, including specific forms and their relevance
E-way Bill for Transport of Goods
Background and procedures for the generation of e-way bills required for the transportation of goods
Regulatory provisions and penalties associated with e-way bills
Miscellaneous Issues in GST
Discussion on anti-profiteering measures, tax deduction at source (GST TDS), and advance ruling mechanisms
Taxability of Works Contracts and Real Estate Transactions
Coverage of GST on various real estate-related transactions
Specifics on the taxability of sales of developed plots and the inclusion of development costs
Discussion on the act of refraining from or tolerating certain acts under GST
Examination of services provided by housing societies or resident welfare associations
Real Estate Services for Residential and Commercial Apartments
Background and definitions relevant to real estate services
A detailed explanation of GST rates effective from April 1, 2019, for different types of real estate projects
Insights on the valuation for GST purposes when land value is included in the total amount charged
Overview of reverse charge mechanisms for input and services and provisions for ongoing projects regarding input tax credits
Detailed discussion on the apportionment of input tax credit and contracts for constructing affordable residential apartments
Valuation issues and the impact of joint development agreements on real estate services
TDR/FSI and Long-Term Lease Real Estate Transactions
Tax implications on real estate transactions excluding the sale of land or completed buildings
Transfer of development rights and implications for GST
Specific conditions and exemptions related to transferable development rights (TDR), Floor Space Index (FSI), and upfront amounts for long-term leases
Valuation challenges and summary of liabilities in transactions involving TDRs or FSIs
Leasing and Renting of Real Estate
Clarification that leasing or renting of land and buildings constitutes a 'supply of services'
Specifics on renting immovable property and services supplied jointly by co-owners
Exemptions and reverse charge scenarios in the context of services supplied by governmental bodies in relation to renting of immovable property
Construction and Works Contract Services
Taxation details on construction activities and works contract services
Rate of tax for works contract as a composite supply and distinctions between construction services and works contract services
Information on exemptions, concessions, and the tax implications for subcontractors in the context of services supplied to or by the government
Government Related Activities
Overview of public administration services and services provided by the government that are exempt from GST
Details on concessional rates and reverse charge mechanisms for services provided by or to governmental entities, excluding specific departments like railways and post