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Gst commercial property

Meghna (Articleship) (131 Points)

21 December 2018

What is GST liability on a commercial complex being built by me where I take advances from prospective buyers from time to time before completion? Can the buyers take ITC of GST on such immovable property ?

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ANIMESH CHOWDHARY (Practicing CA) (305 Points)
Replied 21 December 2018

Yes, you are liable for GST @ 12% on sale of Commercial Complex in case you received any consideration before getting Completion certificate & Buyers are not allowed to take ITC on such property whether used for business purpose as the same falls under Blocked credit.

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pritesh (CA Final student) (7101 Points)
Replied 21 December 2018

Buyer can take ITC only when he is in same business otherwise he cannot take as per sec17(5).

CA. Heet Shah (Tax Consultant & Practitioner) (6178 Points)
Replied 21 December 2018

The Supply is made by transfering the title to property which done basically after construction of property and the sale of Building is excluded by sch.3 of CGST Act.So GST can't be charged in the same case.Also the input claimed or available to Builder can't be availed by Prospective Buyer.