Dear Sir.,

If got completion certificate then How is GST is not applicable (Exempt)

Once completion certificate is received, and the unit was not sold or agreement to sell was not registered earlier, the property is out of ambit of GST act. Or GST is not levied over (land or) immovable properties, alcohol, petroleum products etc... etc.

Originally posted by : Dhirajlal Rambhia
	Once completion certificate is received, and the unit was not sold or agreement to sell was not registered earlier, the property is out of ambit of GST act. Or GST is not levied over (land or) immovable properties, alcohol, petroleum products etc... etc.

I can't understand sir...

Sir,

How is GST applicable to the said Contractor if he is registered under GST...?

How to he invoice or sale or complete the works...?

If contractor is registered and wants to sell under-construction bungalow, he can do that by charging GST over the sell consideration, and can avail ITC over it.

But if he completed the bungalow and obtains completion certificate; and after that sells it, he cannot charge GST and at the same time cannot avail ITC. (It is debited to P&L acc. as expenditure). But he has to invest full money from his own or take loan to complete the work.

Originally posted by : Dhirajlal Rambhia
	If contractor is registered and wants to sell under-construction bungalow, he can do that by charging GST over the sell consideration, and can avail ITC over it. But if he completed the bungalow and obtains completion certificate; and after that sells it, he cannot charge GST and at the same time cannot avail ITC. (It is debited to P&L acc. as expenditure). But he has to invest full money from his own or take loan to complete the work.

Thank You Sir...

Originally posted by : Dhirajlal Rambhia
	If contractor is registered and wants to sell under-construction bungalow, he can do that by charging GST over the sell consideration, and can avail ITC over it. But if he completed the bungalow and obtains completion certificate; and after that sells it, he cannot charge GST and at the same time cannot avail ITC. (It is debited to P&L acc. as expenditure). But he has to invest full money from his own or take loan to complete the work.

Thank You Sir... Finally I got it...

Please resolve some more doubts regarding the same...

If contractor is registered and wants to sell under-construction bungalow, he can do that by charging GST over the sell consideration, and can avail ITC over it.

Based on this if the Value of Land Rs. 5l & House 15L then How to Charge GST...?

On 20 + GST or 15 + GST or 20 including GST or 15 including GST...? 

But if he completed the bungalow and obtains completion certificate; and after that sells it, he cannot charge GST and at the same time cannot avail ITC. (It is debited to P&L acc. as expenditure). But he has to invest full money from his own or take loan to complete the work.

Based on this, You mean the Contractor fully invest the 20l and finish the Construction work. After get completion certificate from Panchayat*** then he will sale the house to Party and it's not required GST.. Right Sir...?

Even he can apply loan and account it as normal accounting policy... Right...?

Now.,

In case Land owner apply loan and the amount deposited to contractor account frrom Bank which is given loan. Then What...?

Originally posted by : Dhirajlal Rambhia
	"Based on this if the Value of Land Rs. 5l & House 15L then How to Charge GST...? On 20 + GST or 15 + GST or 20 including GST or 15 including GST...?" There are two options...... 12% over 20 lakhs (i.e. with cost of land) or 18% over 15 lakhs. (present prevailing rates of GST)

Sir.,

It's mean 20 lakh + 12% GST / 15 lakhs + 18% GST...???!

If Yes. Why...?

Bcoz, the value of house/House+Land is 15 L / 20 L only then why plus GST...?

I confused or it's to over of the cost to consumers...

Originally posted by : Dhirajlal Rambhia
	Based on this, You mean the Contractor fully invest the 20l and finish the Construction work. After get completion certificate from Panchayat*** then he will sale the house to Party and it's not required GST.. Right?" RIGHT.   Even he can apply loan and account it as normal accounting policy... Right? RIGHT   Now., In case Land owner apply loan and the amount deposited to contractor account from Bank which is given loan. Then What? If during constriction period, GST will be applicable; but if everything occurs after completion, No GST.

Thank You sir... Thank You for the reply...

Some times Contractor deal the House rate as 20 lakhs. Receiving advance 20% and balance will be loan from bank then GST applicable right Sir...?

GST is levied over and above transacted price. Secondly, supplier has to pay the amount to treasury. So, its Government is charging tax over the supply.

But in case supplier sells it as tax inclusive (like MRP on medicines) in that case the supplier/contractor has to pay GST from his own pocket. Depends how he negotiates with customer.

Dear Sir.,

As per my questions and Your valuable replies what I understands as

1. Contractor will finish the House with own money or loan by his name then get Completion certificate. After the sale GST not applicable & ITC not available...

In case ITC is taken as per purchases and it's shown in GST returns then it will be reversible as apply point no 1.

2. Contractor deal the house with part payments from Party then GST applicable as per Land with House or Only House. ITC is available...

Am I right Sir...???