• Regarding GST

Respected Sir/Mam,

 I myself being a builder, am faced with a dilemma at present. I have a building which is nearly completed. The common area and around 70% of the flats are complete and their possessions have been taken. I have not yet filed the completion certificate due to some expenses is still remaining.
 It would be a great help if you could share your valuable guidance in this regard that if i sell the remaining flats now, will GST be applicable on them
 If so, then how much?
I would be ever obliged to you for this advice.

Thanking You.
Yours gratefully,
Saubhik Sen,
(Proprietor of Unitech Builders & Developers)
Asked 5 years ago in Taxation

2 answers received in 1 hour.

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5 Answers

1) GST is applicable on under construction projects

2) for sale of remaining flats GST would be applicable

3) GST is to be recovered at 18 per cent for sale of under construction flats

Ajay Sethi
Advocate, Mumbai
89092 Answers
6362 Consultations

5.0 on 5.0

GST would be applicable on sale of under construction flats

2) for sale of flats after issue of OC no GST is applicable

Ajay Sethi
Advocate, Mumbai
89092 Answers
6362 Consultations

5.0 on 5.0

Hello,

If you will sell the property as a ready to move in i.e after completion of the project or receiving the OC then No GST shall be charged/ payable.

But if it is sold as an under construction property then GST will have to be charged.

Keerthiga Sharma
Advocate, Greater Mumbai
44 Answers
2 Consultations

5.0 on 5.0

Although the Goods and Services Tax (GST) rates have already been finalised on most of the goods and services, calculating its real impact appears to be a mammoth task, especially for under-construction properties.

The construction of a complex building, civil structure, or a part thereof, intended for sale to a buyer, wholly or partly, is subject to 12 per cent tax with full input tax credit (ITC), subject to no refund in case of overflow of ITC. Thus, the basic construction cost may come down a little, but as the input tax credit is limited to 12 per cent, there may not be much saving in the high-end constructions.

It is still not clear what would be the abatement available for the land cost, for calculating service tax on under-construction projects. In addition, as states have different state-level taxes, the implication of GST may not be uniform, across all states.

T Kalaiselvan
Advocate, Vellore
79250 Answers
1618 Consultations

5.0 on 5.0

Will GST applicable for running projects right now or after November 2017 ?

It is applicable for the flats under construction as on the current date

T Kalaiselvan
Advocate, Vellore
79250 Answers
1618 Consultations

5.0 on 5.0

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