ITC OF GST CHARGED BY DEVELOPER ON CONSTRUCTION SERVICE

[NAMAN DOKANIA]

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??

AI Summary

GST on developer-supplied flats: valuation and timing rules govern liability, and early invoicing can enable input tax credit.
GST applies to apartments transferred to a landowner in consideration for development rights, with value deemed equal to the price charged to independent buyers nearest to the date of transfer. The developer's tax liability is ordinarily linked to completion, but the developer may discharge the liability earlier by issuing a tax invoice so the landowner can claim Input Tax Credit. ITC is available subject to standard conditions, and developers may be required to reverse proportionate ITC for unsold units on completion, though such reversals are not uniformly followed.