Real-estate GST is one of the most intricate areas, with its own rate scheme, input-credit rules and reverse-charge conditions that differ from ordinary business. Whether you’re a developer, a works contractor or a sub-contractor, the treatment changes with the project type — so this is a sector where specific advice pays for itself. (Rates and conditions here are periodically revised; we apply the current position.)
Residential projects: the no-ITC scheme
Under the scheme for residential real estate, affordable housing is taxed at a concessional rate and other residential units at a higher one — both without input tax credit. Because ITC is not available under this route, cost planning changes completely: input GST becomes a cost, not a credit. The affordable-housing definition and the exact rates are set by the Council and revised from time to time, so we apply the current position to your project.
Commercial, works contract and sub-contracting
Commercial units and works-contract services follow different rates (commonly 18% for works contracts, with input credit). A builder, a works contractor and a sub-contractor can each be at a different point in the chain with different treatment. Mapping your exact role and project mix is the first thing we do.
Reverse charge on procurement shortfall
The residential scheme requires a minimum share of inputs to be procured from registered suppliers; any shortfall triggers reverse-charge tax in the developer’s hands. There are also RCM provisions on things like TDR/development rights in joint-development arrangements. These are exactly the conditions that create unexpected liabilities — we track them so nothing is missed.