IMPACT OF GOODS AND SERVICES TAX ON BUILDING CONSTRUCTION PROJECTS AT ISLAMPUR CITY

Abstract

Goods and services tax or GST as it is known is all set of game changer for Indian economy. In, India there are different indirect taxes apply on goods and services by central and state government. GST is intended to include all these taxes into one tax with ITC and charged on both goods and services. Thus excise duty, special additional duty, service tax, VAT are replaced and added into GST. For successful implementation of GST, it is necessary that the government at both central and state levels agree to merge all their taxes into SGST/CGST. In building construction projects GST is now applied mostly on materials. The materials having major role in building construction projects. In building construction projects required 60% to 70 % cost for materials. The material rates are changes due to new taxation system, therefor it changes cost of construction projects.