Situation – 1: Construction is at finishing stage. 90% Bills already raised and maximum Payments also collected by the developer. Balance 10% is payable on Possession of the Unit. Possession of Unit is expected to be in the month of August, 2017 (in GST Era).
Qns 1. For calculating Inputs:- Can we consider unsold units on which GST can be charged from the customers before CC for availing Input credits?
For a developer any unsold units are considered as stock which may be semi finished or nearing completion and it is not considered as immovable property till CC is obtained from KMC. So can we say that whatever materials developers have purchase to make that semi finished stock input will be available? If Yes then can we say that after 1st July 2016 whatever Vat or excise bill or invoice is with a developer, which have gone for making of the unsold stock (flats or offices), input can be availed on that?
Also what is the position in case of sold units which goes into to GST regime in which part payments (e.g. 10%) are realized as GST from the buyers of sold units?
How to identify or Calculate Input Credit Figures on these two cases?
dear arup you can take the benifit of material used in underconstruction flats, input material lying & even wholly constructed flat on whole of the amount of excise paid if you have excise paid invoices . otherwise @ 9% *60% under cgst (only available to other than manufacturer & service providers). and under SGST it will be told after sgst act got notified.
further invoices should not be 1 year old
further in gst era u have to pay gst only upon 10% of value.provisions of service tax & gst are similar in this regard.
CAclubindia
