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GST ON SALE OF RESIDENTIAL FALT

02 December 2023

If flat sale after issuance of completion certificate then sale of flat is exempt from gst.
Then is developer required to pay gst under rcm???
Beacuse it is mentioned that,

"Where promoter opts to pay tax at full rate (8%/12%) after availing ITC,
proportionate reversal of Input Tax Credit is required in respect of apartments remaining
*unsold as on date of completion* or first occupation, whichever is earlier."

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4 Replies

sabyasachi mukherjee (27537 Points)
Replied 03 December 2023

Gst on sale of residential flats.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 03 December 2023

@ Darsh*t,

read exactly this one alos

....... AFTER AVAILING ITC...

Money Money (413 Points)
Replied 04 December 2023

According to the information I found, the developer is not required to pay GST under RCM if the flat sale is after the issuance of completion certificate. This is because the sale of completed flats is neither a supply of goods nor a supply of services under GST, and hence no GST is applicable on such transactions123. However, the developer may still have to pay GST under RCM on other supplies, such as TDR, FSI, or works contract services, depending on the conditions and rates specified by the CBIC456. The proportionate reversal of input tax credit is only applicable if the developer opts to pay tax at full rate (8%/12%) after availing ITC, and not if the developer opts for the new scheme of 1%/5% without ITC4. I hope this clarifies your query.