Sale of flats under GST whether to be shown in Turnover.He is also doing sale of taxable supplies.

[Rajendra Prasad]

Sale of flats under GST whether to be shown in Turnover .He is also doing sale of taxable supplies also.

[Kashish Gupta]

Dear Rajendra Prasad Ji,

In case sale of flats is after obtaining completion certificate i.e. they are immovable property, then it will be covered under entry number 5 of Schedule III - "No Supply" and shall accordingly be shown in returns.

Further, explanation to section 17(3) of the Act requires a person to include this value in the value of exempt supplies only for the purposes of calculating/apportionment of credit. However, there are different school of thoughts in ensuring compliance with this provision.

[Rachit Agarwal]

Sale of Flats after obtaining the Completion Certificate would niether be supply of goods nor be supply of services as the same falls within the ambit of Schedule III to Section 7 of the CGST Act, 2017.

Hence the same would not be part of "Aggreate Turnover" as defined u/s 2 of the CGST Act, 2017

[Ganeshan Kalyani]

I understand the taxpayer is having two business vertical, one is sale of flats and another is supply of taxable goods. (If my understanding is incorrect, please furnish the correct facts). If two different vertical then sale of flat would be included in the return. It will be shown under exempt supply if sold after the completion certificate is received. Under such scenario very less flats would be available. Major flats are sold while they are under construction. Since it gives financial inflow from the customer who books the flats.

AI Summary

Sale of flats after completion certificate treated as no-supply and recorded as exempt in returns for credit apportionment. Sale of a flat after issuance of the completion certificate is treated as a no-supply under Schedule III and reported in returns as exempt supplies; its value must be included for input tax credit apportionment under section 17(3). Sales before completion are taxable supplies and included in aggregate turnover. If distinct business verticals exist, completed-flat sales are shown as exempt in the return while other taxable supplies are reported separately.