GST TAX LIABILITY FOR BUILDERS

[Davinder Singh]

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.

AI Summary

GST liability for residential flats depends on completed supply status; transitional input credit available proportionately after appointed day.
GST liability depends on whether construction was a Completed Supply before the appointed day: completed flats with completion formalities before that day are not taxable under GST. Transitional input tax credit for under-construction units is available proportionately for supplies made after the appointed day, subject to that credit having been allowable pre-GST, being allowable under GST, supplier tax payment, and timely filing of returns; composition scheme status affects eligibility.