GST ON SALE OF RESIDENTIAL FALT

277 views 4 replies

Darshit Rathod

38 Points Joined June 2017

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."

Replies (4)

sabyasachi mukherjee

28026 Points Joined May 2017

Gst on sale of residential flats.

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

@ Darsh*t,

read exactly this one alos

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

Money Money

433 Points Joined February 2020

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.