GST on BOCW Cess-The Powder Keg waiting to explore with Booming Construction

The nuances surrounding the Building & Other Construction Workers’ Welfare Cess (BOCW Cess) further add to the intricacies of the tax landscape surrounding the GST ecosystem on Construction be it residential or commercial. If the developer fails to promptly discharge the BOCW Cess obligations in isolation, there is a possibility that the Cess amount might get integrated into the project cost. Consequently, this inclusion could trigger GST implications on the total consideration involved. It's crucial to note that any GST paid on the BOCW Cess for immovable property does not qualify for ITC, compounding the tax implications in such scenarios. Additionally, both the BOCW Cess itself and the GST paid on it are not eligible for credit, further complicating the tax treatment in this context. And the interest clock may be ticking.