real estate business can avail itc on flat sales

one of my client doing purchase of land and construct residential building and finally sold to customer treat as a plats. whether he is eligible to claim itc on materials purchased like cement, bricks, etc?
Replies (8)

Yes, when the flats are charged GST at 12% over the value of the flat inclusive of land cost, ITC is available over all input GST paid......

In my view, the ITC cannot be availed on inputs like cement, bricks etc. Section 17(5) (c)of CGST Act clearly lays down restriction on availement of credit when works contract service is supplied for consrtruction of immovable property. The builder has purchased cement, bricks etc. after paying GST and is constructing a builidng/flats which is obviously, immovable property. Keeping in view the general principle of cascading effect of taxation, the credit should have been allowed. However, in view of the specific bar in section 17(5)(c), credit is not admissible.

Brother think of immovable property with respect to Builder. for him it's movable property only.
Gst is liable only on the sale of property which is in construction link plan. it will be treated as deemed service .
as the output supply is taxable so itc is also available on gst paid while receive goods & Service

@ RAMESH KUMAR SINGLA, Sir, I am an article student, my client is an real estate company sales open plots as well as costructs residentials buildings as per customer requirement. So what i want know is on what type/kind of expenses we can claim gst.

Like

1.Blasting work

2.Miller hire charges

3.Cement,bricks

4.Electrical works.

5.Plumbing

6.Painting..etc.. 

@ RAMESH KUMAR SINGLA, Sir, I am an article student, my client is an real estate company sales open plots as well as costructs residentials buildings as per customer requirement. So what i want know is on what type/kind of expenses we can claim gst.

Like

1.Blasting work

2.Miller hire charges

3.Cement,bricks

4.Electrical works.

5.Plumbing

6.Painting..etc.. 

You can claim ITC in respect of GST paid on all the above bills.

Sir, some are saying we cant take..could explain it briefly. I mean the reason and the condition which allows to take Input credit 

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