16 October 2021
Respected Sir, I have some question regarding RCM : 1 ) If I am builder & I complete a flat apartment scheme . After completion certificate i am going to sale such flat( Sale - As Trading View ). So No GST on my sales. But I have question that in such case RCM U/s 9(4) & RCM U/s 9(3) will be applicable or not ?
2) if I not builder but i have own a plot . So I have construct a flat apartment scheme on same plot. After completion certificate i am going to sale such flat ( Sale - as Investment view ). So due to Investment sale view i need not to pay GST on Sale . But in such case RCM U/s 9(4) & RCM U/s 9(3) will be applicable or not ?
Sir please reply i am waiting for your valuable reply.
16 October 2021
If your questions are just for analysis or application of RCM in such transactions, then in both the transactions RCM is not applicable.
18 October 2021
Sir Actually I am working as GST Practitioner. A Clients ( He is working as Builder) discus with me that He having a plot & he is going to construct flat apartment. But he will sale all flat after completion certificate. Also he told me that all construction expenses like material , labour etc will be done from unregistered dealers. His question is that, considering above situation in below situation RCM U/s 9(4) & RCM U/s 9(3) will be charged or not ? Situation 1 ) Trading View : If he sale all flat after completion & he want to show all sale transaction as trading then RCM U/s 9(4) & RCM U/s 9(3) will be charged or not ?
Situation 2) Investment View :If he sale all flat after completion & If he want to show as sale of investment assets & he will pay capital gain. then RCM U/s 9(4) & RCM U/s 9(3) will be charged or not ?
18 October 2021
1. As a promoter of the plot, RCM u/s. sec 9(4) gets applicable only if 80% purchase of all the material & full procurement of cement from registered dealer is not done. RCM u/s. 9(3) may not be applicable unless some specific services like hiring of security personal etc. 2. As investor, if he is not registered under GST, RCM under both the section will not be applicable.
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