GST for the Construction Industry

The activities of the construction industry include the building of new structures, modifications, maintenance, repair, alteration, renovation, dismantling, removal, demolition and improvements on these structures.

It includes any works which form an integral part of, or are preparatory for the works mentioned, including site clearance, soil investigation and improvement, earth moving, excavation, lying of foundation, site restoration and landscaping.

All contractors and subcontractors in the construction industry, whether they are companies, partnerships or self-employed individuals are liable to be registered if their annual turnover involving taxable supplies exceeds the prescribed GST threshold in the past 12 months or within the future 12 months.

• WHICH BUSINESS UNIT MIGHT BE AFFECTED ? 
• WHY GST? 
• SCOPE AND CHARGES 
• TAX INVOICE & RECORD KEEPING
• TIME OF SUPPLY AND ACCOUNTING PERIOD
• TAXABLE SUPPLIES
• INPUT TAX CREDIT
• CONTRA PAYMENT
• CONTRACTS

Module 1- What is GST

 Module 2- Why GST

o   Government’s View

o   Economist’s View

 Module 3 – GST Models & Concepts    

 Module 4 – How Does GST Work

1. GST scope
2. Supply
   • Goods
   • Services
   • Import& Export
   • Time of Supply

 Module 5 – Input Tax

 What is input tax?

1. Mechanism to claim input tax
2. Allowable input tax
3. Criteria for claiming input tax
4. Non allowable input tax (Blocked input tax)
5. Apportionment of input tax
6. De Minimis Limit
7. Refund of input tax
8. Repayment of input tax
9. Bad debts Relief to registration
10. Input tax claim on specific cases

 Module 6 – Accounting for GST, Adjustment and Partial Exemption

 Adjustment to input tax and output tax

1. Partial Exemption

Module-7  GST Return

1. Tax invoice
   • What is Tax Invoice
   • Importance of a Tax Invoice
   • Issuance of Tax Invoice
   • Non-Issuance of Tax Invoice
   • Tax Fraction
   • Tax Inclusive
   • Types of Tax Invoice
   • Full Tax Invoice    
   • Tax Invoice for Mixed Supplies

• Other Document as Tax Invoice

 Module - 8.   Record keeping

 Sec 36 - Duty to keep record

1. By who and why?
2. Record keeping by non taxable person
3. Failure to keep records
4. What are records?
5. Category of preserving records
6. Types of records

• Relating to registration
• Relating to business activities
• Relating to accounting
• Relating to taxation
• Relating to electronic form
• Others

1. When I must start keeping record?
2. Method of preserving records
3. Record on GST Summary Sheet
4. Regarding Bad Debts Relief Claim
5. What is Accounting basis for GST?
6. What is taxable Period?

 Module – 9   General Operation of     Construction Industry

 Registration

1. Taxable Supplies
2. Time of Supply and Accounting Period.
3. Place of Supply
4. Progress Payment
5. Payment not in the form of money
6. Input Tax Credit
7. Construction Works Relating To Exempt Properties
8. Retention Amount
9. Damages and Out of Court Settlement
10. Bad Debts
11. Supply of workers or services of personnel from overseas
12. Contracts
13. Transitional Provisions
14. Mixed Supplies and GST Treatment