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Small level builder

28 June 2020

a small level builder making residential flats and selling the same after completion and again performing the same activity

is gst liable to be registered?

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7 Replies

CA ABHAY GUPTA (Practice) (3235 Points)
Replied 28 June 2020

No.. activity cover by schedule III of the act hence no gst levy

1 Like

Rajkumar Patel (602 Points)
Replied 28 June 2020

100 and 110%, it is covered under scope of GST. sale of building is covered under schedule 3 if such building is sold after obtaining BU certificate.

1 Like

Shivam RC (Student) (23683 Points)
Replied 28 June 2020

As per Para 5 of SCHEDULE III of the CGST Act 2017, "Sale of Land and subject to clause (b) of Para 5 of Schedule II, Sale of Building" is neither treated as Supply of Goods nor Supply of Services.

Hence GST is not applicable on Sale of Completed Building.

3 Like

GAURAV KATYAL (25 Points)
Replied 28 June 2020

If in such areas like kachhi colony type where no such completion certificate is required to sale flats and if any person buy a flat at 90% completion work and give token money say 10% and rest at time of registration. in this case what will be the scenario.

SUSHIL PANCHAL (25 Points)
Replied 28 June 2020

Please ensure that he has not taken any amount before completion of property, if he took any amout then GST should be levied.. otherwise Gst shall not be levied

KRISSHNAN KP (4215 Points)
Replied 29 June 2020

Yes no doubt

CA Rashmi B (Assistant Manager) (787 Points)
Replied 30 June 2020

If agreement is made before completion of building for the same of building after completion it would lead to supply of construction service and GST would be leviable. However if agreement made after completion certificate or OC obtained it willl be a schedule III transaction and no GST would be applicable