Glossary · G
Goods and Services Tax (GST in Construction)
India's indirect tax on construction materials, contractor services and real estate, charged at slabs that depend on the activity.
What is Goods and Services Tax (GST in Construction)?
The Goods and Services Tax (GST) is India's indirect tax on the supply of goods and services, and it taxes construction at different slabs by activity. For example, steel attracts 18% GST, and residential construction services may attract 1% or 5% without Input Tax Credit (ITC). Project cost estimates need the right slab for each item.
Practical example
A developer buys structural steel worth ₹10,00,000 and pays 18% GST, which is ₹1,80,000, to the supplier. Depending on the rules for the housing project (for example affordable or premium), the developer's accountant must decide whether the ₹1,80,000 can be claimed back as Input Tax Credit against the GST collected from homebuyers.
In SuperWise
SuperWise keeps tax profiles such as GST 18% in a taxes master, each built from CGST, SGST, IGST or TDS components. A material resource carries an HSN or SAC code and a default tax profile, a purchase order line takes a tax profile, and a work order sets the default tax for its RA bills. A purchase bill records the GST invoice number.
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