Dear sir,
Advances received by Landlord share from the prospective buyer, which construction would take place to complete in 2-4 years, Is GST Applicable, kindly enlighten with statutory provisions. Flats alloted in JDA on these flats only they are getting advances, kindly clarify
GST on Advances for Flats Under Construction: 18% or 5%? Notification No. 11/2017-Central Tax (Rate) Explored A query was raised about the applicability of GST on advances received by a landlord from prospective buyers for flats under construction, expected to complete in 2-4 years. One response cited Notification No. 11/2017-Central Tax (Rate), suggesting a 9% CGST and 9% SGST rate for real estate services, applicable to advances as no separate rate exists. Another response noted that if the project is ongoing and not under the old GST rate scheme, advances would be taxed at 5%. It emphasized issuing an invoice upon receiving payments per agreement milestones, not treating them as advances. (AI Summary)
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