GST ON SALE OF RESIDENTIONAL UNITS BY BUILDER

[tejas kulkarni]

MY CLIENT IS BUILDER WHO RECEIVED RS 20 LAKH BOOKING AMOUNT FROM CUSTOMER AND EXECUTED AGREEMTNT TO SALE OF 70 LAKH. IN THIS CASE WHAT IS VALUE OF SUPPLY ?

CAN HE PAY NOW ONLY ON 20 LAKH?

AI Summary

GST Payable on 20 Lakh Advance for Residential Unit; Advance Reflects in Returns and Reduces Final Tax Invoice. A builder received a booking amount of 20 lakh for a residential unit priced at 70 lakh. The question was whether GST should be paid on the advance amount. It was clarified that GST is payable on the 20 lakh advance and should be reflected in returns. The advance can be adjusted against future supplies, and the tax paid on the advance reduces the tax on the final invoice. The discussion also covered the time of supply under GST, which is when the advance is received. It was confirmed that an agreement to sell is not treated as an invoice for GST purposes.