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.
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?
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.
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?