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Is GST is applicable on Sale of flat and construction work?

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Ranit Das

Accountant

37 Points Posted on 23 January 2020

Is GST is applicable on sale of flat and construction work in point of view of the promoter or builder?

Replies (5)

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) implications for builders and promoters regarding the sale of flats and construction work. Generally, GST is not applicable on the sale of completed, constructed flats. However, GST is levied on the sale of under-construction flats. The applicability also depends on whether the flats are sold before or after construction, with specific rules for land transfers to builders and reverse charge mechanism (RCM) considerations.

Anup Agarwal

1184 Points Posted on 23 January 2020

1. GST is not applicable on sale of constructed flats, However GST is applicable on sale of under construction flats.

2. In case of person transfer it's land to builder to develop flats-

A. if flats sold before construction- then GST shall be levied on sale of flats.
B. if flats sold after construction than builder will pay GST under RCM on transfer on land by person to builder.

also builder shall charge GST on service of construction

Ranit Das

Accountant

37 Points Posted on 23 January 2020

A builder cum promoter has been paid gst on sale of building materials like cement and iron bars but he didn't pay the gst on sale of flat but both has considered in turnover as per financial but flat sale not consider in gst annual return....is it correct?