Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Interest & penalty on itc under construction

Ravi SADhiyan (Practice) (4510 Points)

05 December 2018

Mr. Radheshyam is a builder. who contrction a complex of 50 Unite.

He Purchased Material & Service at availed credit in every month of ITC . He sold 30 Unite ( Taxable ) before completion of complex and pay gst and balance 20 Unite sale ( Non Taxable ) after receive completion certificate from Munciple Corporation

My Query is that he availed ITC on whole material & service whether any penalty and interest levy

Reply
Follow
Share

3 Replies

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 06 December 2018

Yes interest is applicable

Sale of flats after issuance
of completion certificate without payment of GST in terms of
clause 5 of schedule-III to CGST Act are exempt supplies .

Hence As per Section 17 the ITC attributed to Flats sold after completion is to be reversed with Intt. (refer Rule 42, 43)

Upgrade to CAclubindia Pro. Subscribe Now!

Ravi SADhiyan (Practice) (4510 Points)
Replied 06 December 2018

Originally posted by : Pankaj Rawat
	Yes interest is applicable Sale of flats after issuance of completion certificate without payment of GST in terms of clause 5 of schedule-III to CGST Act are exempt supplies . Hence As per Section 17 the ITC attributed to Flats sold after completion is to be reversed with Intt. (refer Rule 42, 43)