Income Tax & GST Query

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This query is : Resolved

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A builder is gifting a flat to his sister and needs advice on the Income Tax and GST implications. While the sister likely won't pay Income Tax on the gift, the builder needs to consider GST. The flat is considered stock for the business, and GST may apply to gifts to relatives without consideration, even for completed properties, though GST is typically not applicable to flats with a completion certificate.

CA. Aditya Goel

CA. Aditya Goel (Querist)
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07 August 2020 Brother (Builder/Construction business) gift one of the flat to his sister.

please help with Tax and GST implication on both brother and sister.

as per me, no Income tax in the hands of sister as its a gift. what about GST?

its a Stock for brother and hence how it will be treated in books of accounts and income Tax?

as per schedule 1, GST is applicable on supply to a relative without consideration so will he collect GST from sister?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 August 2020 No Income tax in the hands of sister as its a gift. GST is applicable on supply to a relative without consideration so collect GST from sister.

CA. Aditya Goel

CA. Aditya Goel (Querist)
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10 August 2020 but since its a flat, is GST applicable here?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 August 2020 GST applicable on under construction flat. Completion certificate obtained flats no GST applicable.

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