1. When do Developer charges GST on Flats given to landlord at the price of the first booking?? At the time of Date of AGREEMENT or on the date of completion certificate??
2. If It is on the date of completion certificate, then how can we plan so that the landowner can take the input tax credit of the gst charged by the builder??
Clarification on GST: Developers charge GST on flats given to landowners upon development rights transfer, not post-completion. A discussion on a forum addresses when a developer should charge GST on flats given to a landowner, either at the date of agreement or completion certificate. It is clarified that GST is payable by the developer on the value of similar apartments charged to independent buyers at the time of transferring development rights. If flats are handed over after obtaining a completion certificate, no GST is payable. However, GST liability can be discharged earlier by issuing a tax invoice, allowing the landowner to claim input tax credit (ITC). The developer must reverse ITC proportionately for unsold flats upon obtaining the completion certificate. (AI Summary)
TaxTMI 
TaxTMI 
