Module 9: GST Compliance for Sector-Specific Industries
🧱 1. Real Estate & Construction Industry
⚖️ GST Applicability:
- Under-construction properties attract GST at 5% (no ITC) for residential and 12% (with ITC) for commercial.
- Ready-to-move-in properties (with completion certificate) are exempt.
🏗️ Key Compliance Points:
- Reverse Charge Mechanism (RCM) for supplies from unregistered contractors.
- Project-wise segregation of input tax credit.
- Maintenance of detailed site-wise expenses and invoices.
- Filing of GSTR-3B, GSTR-1, and Annual Return (GSTR-9) is mandatory.
🧾 Common Challenges:
- Blocking of ITC on certain inputs.
- Valuation complexities for joint development agreements (JDAs).
- Advance receipt vs. time of supply mismatch.
🚚 2. Transport & Logistics
📦 GST Treatment:
Goods Transport Agencies (GTAs) have the option of:
- 5% GST with no ITC, or
- 12% GST with full ITC
- Passenger transport (non-AC buses) is exempt, while AC transport is taxable at 5%/12%.
- Mandatory e-way bills for goods movement over ₹50,000.
- HSN code classification varies based on mode (rail, road, air).
- RCM applicability if services are availed by registered persons.
🏥 3. Education & Healthcare Sector
🏫 Education:
- Core educational services (schooling, college, degree) by recognized institutions are exempt.
- Coaching classes, test series, online learning platforms are taxable at 18%.
🏥 Healthcare:
- Healthcare services provided by clinical establishments and doctors are exempt.
- Cosmetic surgery, medical insurance, pathology labs are taxable.
⚠️ Common Issues:
- Incorrectly claiming ITC on exempt services.
- Non-segregation of taxable and exempt income.
- Complexities for ed-tech startups and diagnostic chains.
💻 4. IT & Software Services
🌐 GST Applicability:
- All software development, consulting, support, and cloud services are taxable at 18%.
- Export of software services is treated as zero-rated under LUT/Bond.
📌 Key Compliance Requirements:
- Maintain foreign invoices, bank realization certificates (BRC), and LUT documentation.
- Report zero-rated supplies in GSTR-1 under Table 6A.
- Proper classification under SAC codes is essential (e.g., 9983 series for IT services).
💡 Challenges:
- Place of supply complications in cross-border services.
- Valuation when bundled with hardware or licenses.
- GST refund delays on export ITC.
👨💻 5. Freelancers & Online Professionals
📲 Who’s Covered?
- Freelance content writers, designers, developers, trainers, and digital marketers.
- Influencers, bloggers, YouTubers, consultants.
📜 GST Obligations:
- If annual income exceeds ₹20 lakh (₹10 lakh in NE states), GST registration is mandatory.
- Exported services are zero-rated; need to file LUT.
- Tax rate is generally 18%, with ITC eligibility.
🧾 Compliance Tips:
- Raise GST-compliant invoices.
- File GSTR-1 and GSTR-3B monthly or quarterly.
- Claim refund of ITC if offering export services.
🧩 Sector-Specific GST Filing Summary
| Sector | Applicable GST | Exemptions | Key Filings |
|---|---|---|---|
| Real Estate | 5%–18% | Ready properties | GSTR-1, 3B, RCM |
| Logistics | 5% / 12% | Certain transport | E-way, GSTR-1, 3B |
| Education | 18% | Formal education | Exempt disclosures |
| Healthcare | 18% / Exempt | Clinical services | Exempt + taxable split |
| IT/Software | 18% | Exported services | GSTR-1, LUT, Refund |
| Freelancers | 18% | Exports under LUT | Invoicing, GSTR-1/3B |
📝 Conclusion
Every sector has unique GST implications, and one-size-fits-all compliance does not work. Businesses must align their invoicing, ITC claims, RCM reporting, and return filings with sector-specific provisions to avoid penalties and ensure smooth operations.
If you operate in any of these industries, expert GST consultation is highly recommended to remain compliant and take full advantage of available benefits.
📣 Need Expert GST Support by Sector?
At Verotus Finlegal Solutions LLP, we offer:
- Sector-wise GST advisory
- Audit & assessment readiness
- E-invoicing setup for IT & logistics
- Export compliance & refund filing
- Freelancer GST planning & return filing
📍 Kolhapur, Maharashtra
🌐 www.verotusllp.com
📞 +91-7066336680
