Gst on preferential location charges

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies GST on preferential location charges (PLC) for ready-to-move properties. GST is applicable on PLC if it's part of the taxable property cost. While the government doesn't directly refund GST on cancelled properties post-possession, developers can claim refunds from the government. Input Tax Credit (ITC) is generally not allowed for property purchases.

Rahul Singh

Rahul Singh (Querist)
Follow

10 August 2021 can developer charge gst on preferential location charges for ready to move property? in case property gets cancelled after possession (but not registered) then can gst gets refunded by government?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

10 August 2021 No GST applicable on ready to move property for which completion certificate obtained.
Government will not refund GST obtain refund from your builder, he only can get GST refund from government.

Rahul Singh

Rahul Singh (Querist)
Follow

10 August 2021 but gst applicable on 'preferential location charges' even though that is ready-to-move property? I know about property cost but not aware of PLC so please confirm.

if they can charge then incase if property is cancelled, can they get refund from government?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

10 August 2021 GST applicable on preferential location charges if GST applicable on property.
Yes, they can get GST refund from government.

Message likes : 1 times

Rahul Singh

Rahul Singh (Querist)
Follow

12 August 2021 can i take gst input for this? developer earlier missed adding my gstin? can they do now? it is big amount.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

13 August 2021 ITC not allowed on property purchase.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now