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

Debate on GST: Flats Sold with Completion Certificate Exempt from Aggregate Turnover, Affecting Credit Calculations A forum discussion addresses whether the sale of flats under GST should be included in turnover, particularly when the seller also deals in taxable supplies. One participant clarifies that if flats are sold after obtaining a completion certificate, they are considered immovable property under Schedule III, thus not part of 'Aggregate Turnover' but should be included in exempt supplies for credit calculation. Another contributor concurs, stating such sales are neither goods nor services under the CGST Act. A third participant notes that if the business involves multiple verticals, sales after completion certification should be shown as exempt supplies, while most flats are sold pre-completion for financial reasons.