GST Services for
Real Estate
& Construction

Analyze project to determine applicable GST rate: Review project specifications (carpet area of units, total project cost, location). Classify as: Affordable housing (1% GST) — if ALL units meet criteria (≤60/90 sqm carpet, ≤₹45 lakh price). Regular residential (5% GST) — if ANY unit exceeds affordable criteria. Commercial (12% GST with ITC) — offices, shops, malls. Verify RERA registration status (mandatory for 1%/5% rates). Calculate land vs construction value bifurcation (80:20 rule). Prepare project-wise rate applicability certificate. We provide detailed rate advisory based on project blueprints and cost sheet.

Register project under GST (if not already registered): File Form GST REG-01 on portal. Documents: PAN, Aadhaar, project address proof, RERA registration certificate, land documents, sale deeds, builder license. Mention: Nature of business (real estate development), RERA project number. Approval timeline: 3-7 days. For multiple projects in same state: Single GSTIN with project-wise accounting. For projects in different states: Separate GSTIN for each state. We handle GST registration with RERA linking and project documentation.

Set up compliant invoicing system: Calculate land value (1/3rd of total) and construction value (2/3rd) as per 80:20 rule. Prepare unit-wise pricing sheet showing: Total price, Land component (no GST), Construction component (GST applicable), GST amount, Total payable. Invoice format (sale agreement/allotment letter): Show land and construction values SEPARATELY. Mention GST rate, CGST, SGST amounts. Include RERA project number. Buyer's details (name, PAN, address). We provide GST-compliant invoice templates and unit-wise pricing calculator.

Manage input purchases and reverse charge compliance: For materials (cement, steel): Purchase from registered suppliers (collect tax invoices with GSTIN). For residential projects (1%/5%): Cannot claim ITC — GST is cost. For commercial projects (12%): Claim full ITC in GSTR-3B. For works contracts (contractor services): If contractor is REGISTERED: RCM applies — pay 18% GST to government, claim ITC if eligible. If contractor is UNREGISTERED: Contractor pays GST (if liable) — collect tax invoice. Maintain separate registers for: Material purchases, Works contract payments (RCM), Capital goods. We provide RCM compliance checklist and contractor verification service.

GSTR-1 due: 11th of next month. Report sales to buyers (property allotments): B2B supplies: Unit sales to registered buyers (companies, LLPs) — report invoice-wise (buyer GSTIN, invoice number, value, tax). B2C supplies: Unit sales to individual buyers (no GSTIN) — report state-wise summary (total sales, GST). Bifurcation: Report only CONSTRUCTION VALUE (land is exempt, don't report land component in GST return). Mention RERA project number in invoice description. Include: Advance payments received from buyers (construction-linked payment plans), Balance payments, Cancellations/refunds (credit notes). We prepare buyer-wise sales register and file GSTR-1 with RERA compliance.

GSTR-3B due: 20th of next month. Summary return: Table 3.1 — Outward supplies (sales to buyers — from GSTR-1). Table 3.1(d) — Inward supplies liable to RCM (works contract payments to registered contractors). Table 4 — ITC claimed: For commercial projects (12%): Claim ITC on materials, RCM GST paid, capital goods. For residential projects (1%/5%): NO ITC (leave Table 4 blank or show NIL). Table 6 — Tax liability: Output tax (sales × GST rate), Add: RCM GST (works contract), Less: ITC (if eligible), = Net tax payable. Generate challan, pay tax, file GSTR-3B. We handle complete monthly filing with RCM compliance and ITC optimization (for commercial projects).

Maintain RERA compliance (linked to GST eligibility): File quarterly progress reports with RERA authority (project construction status, sales updates). Update RERA website with project details, floor plans, approvals. Maintain 70% funds in RERA escrow account (for project construction). Ensure RERA number is valid and project status is 'active'. Cross-verify: GST invoices mention correct RERA number, Project classification (affordable/regular) matches RERA registration. We provide RERA-GST reconciliation service and ensure compliance for concessional GST rates.

GSTR-9 due: 31st December of next FY. Annual return: Consolidation of all monthly GSTR-1, GSTR-3B filed during the year. Reconciliation: Match GSTR-9 with: Project accounts (sales ledger, purchase ledger), RERA escrow account statements, Buyer allotment letters and payment receipts. Verify: Total sales reported = Total construction value billed (land excluded), RCM payments match contractor invoices, ITC claimed (commercial) matches input purchases. GSTR-9C audit (if turnover >₹5 crore): CA certification required. We prepare GSTR-9 with complete project-wise reconciliation and audit certification.

If project involves land owner + developer (JDA model): GST implications: Developer pays GST on development charges/consideration to land owner (if owner is registered). Land owner's share (flats/constructed area) is treated as consideration for development service. Calculate: Developer's revenue share (sale to buyers — GST @1%/5%/12%), Land owner's share (treated as payment for development service). JDA documentation: Clearly define revenue sharing, development charges, land value, constructed area sharing. GST invoicing: Developer issues invoice to land owner for development service (12% GST if commercial, 5% if residential). Land owner may need GST registration if annual receipt >₹20 lakh. We provide JDA structuring advisory, GST treatment analysis, and compliant documentation support.

Handle TDR (Transferable Development Rights) and FSI (Floor Space Index) transactions: TDR/FSI is right to build additional area — treated as service under GST. If builder purchases TDR/FSI from authority or landowner: GST @18% applicable (TDR is a service, not goods). Builder can claim ITC on TDR purchase (for commercial projects), cannot claim ITC for residential (1%/5%). If builder sells TDR/FSI to another developer: Issue invoice with 18% GST, report in GSTR-1 as service supply. Additional compliance: E-invoicing (if turnover >₹5 crore) — generate IRN for each sale invoice. TDS on property sale (if buyer is company/LLP) — 1% TDS on construction value. We provide TDR/FSI GST advisory, e-invoicing setup, and TDS compliance support.