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GST ON WORKS CONTRACT

29 October 2017

A promoter has started construction of residential apartment before 1.7.2017 and all flats have been booked before 1.7.2017 also 99% construction has been done before1.7.2017. Now in the month of November, 2017 the promoter will receive the balance amount from the customers and transfer the flats to customers.
Is GST applicable in this case? explain in details plz.

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (174477 Points)
Replied 29 October 2017

Yes GST will be applicable (provided he is registered under GST) over balance payments...

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Saiman Dutta (20 Points)
Replied 29 October 2017

but sir he has purchased all the building materials by paying VAT. and now he will charge GST on balance payment. So technically he can not claim any ITC. So it will be the extra burden on flat puchaser.

PRABHAKARA M (ASST ) (29 Points)
Replied 29 October 2017

if OC or completion certificate received for those units constructed than no GST is applicable .. other wise for balance amount GST is applicable as per my view.