Input On Real Estate on Transitional Provision.

Mostly real estate organizations had accepted abatement rate in ST or composition scheme in VAT, so they are not allowed to take any input credit on their inwards. So, the question of ITC on stock for them does not arise. Only very few who had assessed under normal scheme will be able to take ITC as per their last returns filed.

Sir,

Just wanted to clarify why cant such real estate developer claim transistional input under section 140(6) even though they were paying VAT under composition scheme...

@ Sanjay Dugar..............

Yes, you are correct, file trans1 and ask for the VAT credits........

@ Arup Ghosh:

Unless the output is GST liable, input ctedits will not be available...........

So, you will have to sell the stocks in trade before six months of appointed date i.e. by December end  and before obtaining completion certificate. You will be required to charge 12% GST over your customers to avail the credits.

Fill form trans1 with all the bills as suggested in the link.......