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Transitional credit for builder

01 December 2017

As on 30.06.2017; We had Constructed 60% of building and utilized Material and services on which we had paid VAT and Servie tax ; same is not yet sold to anyone by us.

Sale takes place after 01.07.2017 ; On what value shall GST be payable ? Whether Can take credit of VAT and service tax paid ?

Balance 40% work is done after 01.07.2017.

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3 Replies

Ravi Kumar Somani (Indirect Taxes Specialization) (3893 Points)
Replied 01 December 2017

GST needs to be paid on 40% of the work done. To the extent of 60% work completed you must have already raised a demand letter with Service Tax and VAT as on 30.06.2017. In case, earlier taxes has been paid over and above 60% then the same can be taken as credit in GST under section 142(11)(c). It needs to be reflected in Form TRAN 1 and transferred to GST.

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kavita Goyal (AM) (40 Points)
Replied 01 December 2017

Hi. No demand is raised ; just work is done 60% ; Input TAx of VAT and Service tax is paid ; Since No sale done No output tax is paid in VAT or Service tax.