Interest & penalty on itc under construction

ITC / Input 107 views 3 replies

Mr. Radheshyam is a  builder. who contrction a complex of 50 Unite.

He Purchased Material & Service at availed credit in every month  of ITC . He sold 30 Unite ( Taxable )  before completion of complex and pay gst and balance 20 Unite sale ( Non Taxable ) after receive completion certificate from  Munciple Corporation 

My Query is that he availed ITC on whole material & service whether any penalty and interest levy

 

Replies (3)
Yes interest is applicable

Sale of flats after issuance
of completion certificate without payment of GST in terms of
clause 5 of schedule-III to CGST Act are exempt supplies .


Hence As per Section 17 the ITC attributed to Flats sold after completion is to be reversed with Intt. (refer Rule 42, 43)
Originally posted by : Pankaj Rawat
Yes interest is applicable Sale of flats after issuance of completion certificate without payment of GST in terms of clause 5 of schedule-III to CGST Act are exempt supplies . Hence As per Section 17 the ITC attributed to Flats sold after completion is to be reversed with Intt. (refer Rule 42, 43)

Dear Sir 

At the Starting Point in above question 

Builder not an Idea that How Many Flate Sale before Completion certifiacte 

So How to Solve Above Problem 

DEAR , builder is liable to reverse ITC only when the flat is sold (after completetion certificate)


CCI Pro

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