Question ID : 39322

167287

In Construction of Affordable Housing Project. if my input & input service is Cement - 20%, Steel - 15%, Sand & Misc - 25% & Labour - 40%, then i am liable to pay gst @ 18% on labour to acheive 80% of input & input service from registered person. whether labour is included in input & input service for 80% criteria from registered person.

All inward supplies will be counted towards 80:20 rule, even if any of the suppliers may be below 20 lacs threshold. Once it is identified that 80:20 rule is attracted (due to some deficit) check the following: a) if deficit is on account of cement purchase, then pay 28% GST on this deficit (on monthly basis and not by Sept next) b) if deficit is on account of capital goods purchase, then pay applicable rate of GST on this deficit (not later than Sept next) c) if deficit is on any other account, then pay 18% GST on this deficit. Pl see #39 of 11/2017-CT (R) for rate of tax on services and #452Q of 1/2017-CT (R) for rate of tax on goods.