when a construction complex is to be sold , no GST is applicable if consideration is paid after 1st occupation or receiving completion certificate- whichever earlier
Knowing this every person will not be paying consideration till either of the two conditions complete and not be paying gst.
Isn't it a loophole or what is it?
5 Replies
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 29 March 2020
Dear
complete Consideration is received after obtained CC, GST is leviable.
Earlier the Builder/Promotor need to Reverse the ITC in case where he received consideration for particular flat being sold after CC ,but As from 1/4/2019, The Rate has been revised which is 1% ,5% without ITC . So now ITC is not required to reversed in such cases , but ... as you know that huge amount money is involved in construction of Buildings , so if builder do no approach for advance booking from customer , he might be short of funds, means short of working capital . So I don't think that any Promotor will refuse to take Advance because of liability GST.
complete Consideration is received after obtained CC, GST is leviable.
Earlier the Builder/Promotor need to Reverse the ITC in case where he received consideration for particular flat being sold after CC ,but As from 1/4/2019, The Rate has been revised which is 1% ,5% without ITC . So now ITC is not required to reversed in such cases , but ... as you know that huge amount money is involved in construction of Buildings , so if builder do no approach for advance booking from customer , he might be short of funds, means short of working capital . So I don't think that any Promotor will refuse to take Advance because of liability GST.
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 29 March 2020
** after Obtaining CC ,GST is NOT Levied
Harshit Acharya
(404 Points)
Replied 29 March 2020
Thank you very much Pankaj sir.. Valuable information.
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