Dear Sir,
Question for builders dealing in construction of Residential Flats.
1. GST Liability for those flats which had constructed before 01.07.17. Investment made by owner with his funds and flats ready for sale.
2. GST Liability of those flats which are under construction and booked by some one before 01.07.17., and an amount of Flat paying in installments and booking after 01.07.17. explain the GST treatment for the same.
3. Eligibility for Input credit in Opening Stock ( Finished Flats ) and work in Progress flats.
GST on Flats: No GST for completed flats before July 1, 2017; applicable on under-construction bookings. Input credit conditions apply. A builder inquired about GST liability for residential flats constructed before and after July 1, 2017. The response clarified that GST does not apply to flats completed and ready for sale before this date if a completion certificate is obtained. For flats under construction and booked before July 1, 2017, GST is applicable, and credit for VAT or service tax paid prior is available proportionally to supplies made after this date. Eligibility for input credit depends on whether the builder is under a composition scheme and if VAT laws allowed credit. Conditions include timely filing of returns and tax payment on inputs. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
