One of our client is involved in buying of plots, constructing home on it and selling it once it is ready (Some time it is sold under constrution ).
Is he need to charge GST on Invoice if he sells it after completion ?
What about availing ITC if sold if sold under construction/post completion.?
3 Replies
CA Aakarsh Jain
(CA)
(10431 Points)
Replied 13 November 2021
As per GST law, construction of a complex, building, civil structure intended for sale to a buyer is considered a service and liable for GST – if any consideration is received before issuance of completion certificate. However, GST is not applicable if the whole of the consideration for a property is paid after issuance of completion certificate by a competent authority or after its first occupancy, whichever is earlier.
CA Altamush Zafar
(GST Consultant)
(15971 Points)
Replied 13 November 2021
If sold before completion or any money received before completion then GST payable on the whole amount. If the first money received is after completion or its is sold after completion then there is no GST.
ITC is not available.
sathya kumar s
(Accountant)
(199 Points)
Replied 13 November 2021
If sold before completion then He need to collect GST. In that case is he entitled to claim full ITC on construction materials purchased....like cement,steel etc.
Recent Topics
- Profit or Loss on Sale of Assets Accounting treatm
- Clarification on RCM on Rent Payment for QRMP Deal
- Reclaimed itc in gstr9
- Gamification in Accounting Software: Boosting Enga
- I want to knw Hsn code and gst rate of resin produ
- Schedule FA clarification
- Income tax on freelance income from crypto
- ITC temporary reversal and reclaim
- Query on Transactions
- Two GSTN under different PAN in same address
Related Threads
CAclubindia
