Gst on resale of property

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This discussion clarifies GST obligations for real estate dealers who purchase and resell properties before the completion certificate is issued. It confirms that GST is levied on the transaction value, not just the profit, for such resales. The conversation also addresses how to correctly report these transactions in GSTR-1, distinguishing between a dealer's role as a reseller versus a builder undertaking works contracts.

Dharmender Leel

Dharmender Leel (Querist)
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16 March 2020 We are a real estate dealer firm dealing in sale purchase of properties.As we purchase under construction properties as stock in trade and sell them on profit.Do we need to charge GST on its profit or total sale value if we resale the properties before issue of their completion certificate.if not whether we have to show them as non taxable supplies in GSTR-1.

CA Anita Bhadra

CA Anita Bhadra (Expert)
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16 March 2020 GST will be levied on transaction value and not on profit if you resale before issuance of completion certificate

Dharmender Leel

Dharmender Leel (Querist)
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16 March 2020 Madam we are only reseller of the property not the builder .We are not doing any alteration or construction on the property.As construction of properties is works contract which is notified as service in gst act.As we are not doing any service how can we charge gst.

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