Interest & penalty on itc under construction

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Ravi SADhiyan

Practice

3087 Points Posted on 05 December 2018

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)

Pankaj Rawat

GST Practitioner

29904 Points Posted on 06 December 2018

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)

Ravi SADhiyan

Practice

3087 Points Posted on 06 December 2018

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)