It is not clear when the Input Tax Credit reversal is to be done as per Rule 42 and Rule 43 of CGST Rules for Villa Projects.
In the case of villa projects, one villa might have been completed and even occupied while many other villas would not have been completed nor sold also.
Invariably there is no statutory requirement to obtain Completion Certificate (CC) or Occupancy Certificate (OC).
Please clarify.
Query on Timing of Input Tax Credit Reversal for Villa Projects Under CGST Rules 42 & 43 Without Completion Certificates A participant raised a query about the timing of Input Tax Credit reversal under Rules 42 and 43 of the CGST Rules for villa projects, where some villas are completed and occupied while others are not. They noted the absence of a statutory requirement for Completion or Occupancy Certificates. One respondent highlighted that a Completion Certificate from the Competent Authority is necessary as per the CGST Act. Another respondent suggested checking if the project is registered under RERA as a single project, which would require a Completion Certificate for the entire project, indicating that reversal might occur only after all villas are completed. (AI Summary)
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