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ITC Availment

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Gangeshwar

proprietor

136 Points Posted on 23 February 2021

Dear All, In one of our real estate companies, we have been charging ITC on duplex and flats sold @ 5% but we are setting off the liability against brought forward ITC. we are not claiming any fresh ITC but adjusting against the past ITC brought forward. Now the query is since we are charging GST @ 5%, can this brought forward ITC be claimed or NO ITC be claimed against the liability. Another query is now during the current year itself, we will be selling some more flats and shopping complexes (another project but under the same company), can we charge GST @ 12% and claim all ITC. Is this switch over from 5% to 12% permissible during the year.

thanks in advance.

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Quick Summary

This discussion addresses a real estate company's query regarding Input Tax Credit (ITC) on duplex and flat sales charged at 5% GST. The company is using brought forward ITC to offset this liability, rather than claiming fresh ITC. The core question is whether this practice is permissible. Additionally, the company seeks clarification on whether they can switch to charging 12% GST on other property sales within the same year and claim all associated ITC, and if such a switch is allowed mid-year.