GST

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This discussion clarifies GST liability for Limited Liability Partnerships (LLPs) involved in real estate development. It addresses whether GST applies when selling flats constructed by a contractor, particularly after receiving a completion certificate. The advice suggests GST is applicable on the contractor's services but not on the final sale of flats post-completion. It also touches upon accounting practices for revenue and expenses, and handling contractor payments when bills are outstanding.

Dipul mehta

Dipul mehta (Querist)

11 June 2020 Please suggest...
One llp doing Real Estate business having land in its own name they appoint one contractor made flats and then sell to buyers now question is can GST liability arise to LLP when sell ..
1. Entire consideration of sell recd after receiving completion certificate.
2. This income we take in PL as revenue from operation (net of expenses like contractor expenses ) is it right...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

12 June 2020 1 No GST applicable when selling after receiving completion certificate. GST applicable on contractor.
2 Show full sale value (turnover) in p and l and contractor expenses separately.

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Dipul mehta

Dipul mehta (Querist)

12 June 2020 Very thank you sir ...One more question we paid advance to contractor but he not give full bill we also file case against him can we book expenses without bill or only een case settled

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

12 June 2020 You can book expenses based on payment made and create liability based on work done.

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