Tax paid on Residential Property

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When purchasing residential property and paying GST, the key question is how to account for this tax. The consensus is that GST paid on property should be capitalised. This means it's added to the overall cost of the property and reflected in its value on the balance sheet, rather than being treated as an immediate expense in the Profit & Loss account.

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(Querist)
13 January 2020 If a buyer purchase a Residential Property and paid GST. The GST Paid on Property be added back to Property Value or not and shows in Balance Sheet of buyer or the GST Paid will be show in Profit & Loss Account.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
13 January 2020 Add GST to properly value.
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KAVIRAJA ADDANGADI

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KAVIRAJA ADDANGADI (Expert)
13 January 2020 Gst on property same need to be capitalised with cost of property.
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Amol S Joglekar

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Amol S Joglekar (Expert)
14 January 2020 GST paid is the cost of the property
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