Proportion of gst on residential flats constructed in stages.

Hi everyone,

I am a resident of Pune and am involved in post sales activity of residential project in one of the localities. The project is under construction and is half way complete. We demand amount in stages from our customers based on percentage already decided and agreed upon in the Agreement to Sale.

As for charging GST on the amount demanded I have seen 2 opinions prevalent. According to one the amount of GST charged should be proportionate to the amount demanded towards the flat/residential unit value. For eg. if 50 Lakh is demanded on 1 crore worth flat as only 50% work is completed, the GST if charged at 12% should be 6 Lakhs (less GST already received). However our Chartered Accountant is of opinion that irrespective of the amount of work completed, the day the Agreement to sale is duly registered, the full amount of GST should be charged unlike in the above example i.e. the whole 12 Lakhs (less GST already received) should be charged.

I am facing altercations from few of our customers who are of opinion that ours is a wrong practice and builders everywhere are charing GST proportionately whereas our CA insists that the GST be charged to the customers according to his suggestion.

Can anyone comment and suggest anything? I would appreciate if you could quote the appropriate sections if your opinion is contrary to our practice.

Thanks & regards,

Bharat