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Gst input credit in real estate sector



Querist : Anonymous (Querist)
12 January 2018
dear sir/ madam,

on the audit of a real estate company, i came to know that after BU permission (i.e. building use permission), no input credit was availed by the company on any type of voucher related to the project. The mgmt explained that no GST is to be charged from the customers as soon as BU permission is granted.
kindly explain is the process right?


CA R SEETHARAMAN (Expert)


Click to Talk 12 January 2018
GST not applicable on sale of house property/building after completion certificate is issued. Hence ITC can't be claimed on sale of such property.


Querist : Anonymous (Querist)
17 January 2018
Dear sir,
Thank you so much for the reply.
One more question I want to raise.
The BU permission was granted on 10.10.2017. However the real estate company didnot take input credit of GST for bills dated prior to 10.10.17 but accounted for on & after 10.10.2017.
Whether the company is right in not taking GST credit?


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