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This discussion clarifies whether a builder is obliged to collect GST from a site owner when flats are handed over as part of a development. The prevailing GST rate is 18% on the construction value. The revised GST scheme, applicable from 1st April 2019, is mandatory for new projects and optional for ongoing ones, with specific rules regarding Input Tax Credit (ITC).

YELLANKI RATHNAGIRI

YELLANKI RATHNAGIRI (Querist)
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05 February 2020 Dear all,

builder has taken land for development, builder constructed 10 flats,
builder sold 7 flats and handover 3 flats to site owner

builder should collect GST from site owner @18% on construciton value
if it is yes

please provide any notification or evidence to collect gst from site owners

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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05 February 2020 Please elaborate the meaning of "handover 3 flats to site owner'

Amol S Joglekar

Amol S Joglekar (Expert)
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06 February 2020 01. The revised scheme applies to residential and commercial apartments.
02. The new scheme is compulsory for projects commenced on or after 1-4-2019. In respect of ongoing projects as on 31-3-2019, the promoter has option to shift to new scheme w.e.f. 1-4-2019 (without ITC) or continue under earlier scheme (with ITC)

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