Residential Villa Construction Taxable as Composite Supply with Deemed One-Third Land Valuation under GST

• Construction of residential villas under direct buyer agreements is a taxable composite supply, even if the building work is fully outsourced.
• The promoter remains contractually responsible, and outsourcing is just a mode of performance.
• The principal supply is the construction of the villa, classified under Heading 9954(ia) for GST purposes.
• For GST valuation, one-third of the total amount charged is deemed as land value, regardless of the actual land price.

Source: taxtmi.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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