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help me me on gst reverse on property topic

Jyoti (Housewife) (71 Points)

06 August 2017

My husband have gst number and run his spareparts business if he can give payment of a plot (land) for me then he can claim reversal of the 12 % gst of on EDC (EXTERNAL DEVLOPMENT CHARGES) of my plot land or not ????

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10 Replies

ISHU BANSAL (30 Points)
Replied 07 August 2017

Dear , your query is not very clear . can u please elaborate or text me at 9051757486

Jyoti (Housewife) (71 Points)
Replied 07 August 2017

Hello sir ,
My name is jatin .I have gstin number and run my spare parts business. Now i am plan to purchase a land (plot) from eldeco company in ldh. Please tell me that the eldeco company charge me gst 12 % on EDC (external devlopment charges). Can i claim this charges for input credit ???

CA Vamsi Krishna N (Finance & Accounts) (65 Points)
Replied 07 August 2017

If you purchase the land for business purposes then Input may be availed. But i doubt that the sale of Plot falls under Immovable property and GST is not leviable. How is the developer charging GST.

I will check the act and revert further.

Even if he charges for development of Land, GST credit can be availed only if the Land is purchased for business. But it is very clear that GST not to be charged on Immovable property.

Jyoti (Housewife) (71 Points)
Replied 07 August 2017

dear sir , i am purchasing the land for build home for residential purpose

Shivam Chomal (498 Points)
Replied 07 August 2017

You will not be allowed to claim credit of goods or sevices used for construction of immovable property even if such goods and services are used in the furtherance of business (as per section 17(5)(d)).