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

Ranit Das (Accountant) (37 Points)

23 January 2020

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

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Anup Agarwal (1184 Points)
Replied 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

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Ranit Das (Accountant) (37 Points)
Replied 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?