GST on sale of under-construction units continues until valid completion certificate or compliant first occupation.

Construction of immovable property intended for sale remains a supply of service under GST until the entire consideration is received after issuance of the completion certificate, where required, or after valid first occupation, whichever is earlier. The stated exception in Schedule III applies only where the statutory completion or occupancy requirements are satisfied. On these facts, no valid completion certificate had been issued, and the claimed first occupation did not meet municipal law requirements, so it did not take the transaction outside GST. Booking or sale of units therefore remains taxable if consideration is received before the completion certificate date.

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Issues: Whether booking and sale of units after alleged first occupation, but before issuance of the mandatory completion certificate, falls outside the scope of GST.

Analysis: Under Schedule II, construction of immovable property intended for sale is treated as a supply of service, except where the entire consideration is received after issuance of the completion certificate, where required, by the competent authority, or after its first occupation, whichever is earlier. Schedule III excludes sale of building only subject to that exception. On the facts, the competent local authority had not issued the completion certificate, and the claimed first occupation was found not to be valid in the absence of compliance with the statutory completion and occupancy requirements under the municipal law. The date relevant for GST liability was therefore the date of issuance of the completion certificate by the competent jurisdictional authority, not the asserted first occupation.

Conclusion: The booking or sale of units would remain taxable as a supply of service if any consideration was received before the completion certificate date. The claimed first occupation did not take the transaction outside GST.

Final Conclusion: The ruling holds that, in the absence of a valid completion certificate, the project cannot escape GST merely on the basis of alleged first occupation, and taxability depends on whether consideration was received before the completion certificate is issued.

Ratio Decidendi: For construction of immovable property intended for sale, GST is attracted until the entire consideration is received after the completion certificate, where required, or after valid first occupation, whichever occurs earlier; an alleged occupation without statutory completion compliance does not displace that rule.

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