Dear Experts and Friends,
Please kindly suggest on the following:-
A Builder Company has accumulated Balance of GST-ITC of Rs.10 Lakhs till JAN-2018 in respect of a project under progress. In Jan-18, that project is completed and completion certificate is also received.Till that date, 10 Flats out of 100 flats still unsold. The Company has NOT received a single rupee in respect of that 10 unsold units.
Now IS THE BUILDER REQUIRED TO REVERSE THE ITC IN JAN-18 IN RESPECT OF THOSE 10 FLATS AND CHARGED OFF TO P&L ACCOUNT?
OR, FULL CREDIT REQUIRED TO BE REVERSED AND CHARGED OFF TO P&L ACCOUNT?
FURTHER, in respect of 90 flats sold prior to CC received, still some balances are to received after obtaining CC for the project. Now IS THE COMPANY LIABLE TO PAY GST ON BALANCE ADVANCES RECEIVABLE WHENEVER RECEIVED AND SET-OFF THAT AGAINST BALANCE ITC?
CAclubindia
