Hardik Shah (Tax Consultant) 13 November 2019
I got information that if any Developer of Residential or Commercial Property, Build's One Unit from All Units and Give
possession to Any other with Electricity and other Connection.
Than this type of Project Does not Fall in GST Act at the same time RERA also does not application on this Project.
ABC Developers float's a scheme in Market of 500 unit, ABC build Shop No.01 and Balance 499 Units are Under Construction. 01 Unit which is Completed had been Handed over to Person with possession Letter and All other Formalities regarding possession is completed by ABC, Then No Question of GST and RERA is applicable to this project.
Please check is there any kind of Provision is there to support above mentioned system?
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Pankaj Rawat (GST Practitioner) 14 November 2019
As per the clause 5(b) of the Schedule II of CGST, Act,
2017, construction of a flat / house / complex intended for sale is supply of Service.
And As per Schedule III if Entire consideration received for flat sale after the completion certificate it's neither a sale of goods nor Sale of Services.
Hence in your case the 1 unit for which the the possession (Sold) has been given cover under supply of services & GST is applicable