Construction ERP for India

GST on construction introduces another layer of complexity. Under-construction residential properties attract either 1% GST without input tax credit or 5% GST without ITC for affordable housing, depending on the carpet area and price thresholds. Commercial construction follows different rates. Developers who opted for the old 12% rate with ITC before April 2019 may still be reconciling transition credits. Each project phase may involve reverse charge mechanism payments to goods transport agencies and labor contractors, adding to the compliance burden.

Project cost management for Indian construction firms must handle contractor billing with TDS deductions under Section 194C of the Income Tax Act at 1% for individuals and 2% for companies, labor cess at 1% of construction cost payable to the Building and Construction Workers Welfare Board, and material procurement where cement, steel, and sand prices fluctuate based on monsoon cycles, mining regulations, and state-level transportation restrictions.

Yukti provides construction companies with project-wise accounting that maps directly to RERA escrow requirements. The system tracks collections against project milestones and generates the quarterly RERA compliance reports that developers must file with their state regulatory authority. GST calculations handle the no-ITC scheme automatically, applying the correct rate based on property classification. Contractor management includes TDS computation, deduction certificates via Form 16A, and labor cess tracking. The procurement module monitors material price trends and alerts project managers when budget variances exceed defined thresholds.