The balance ITC utilisation in Electronic Credit ledger

[SRAVANI ASUPALLI]

Hi
I am a developer / builder under JDA . I have ongoing project and i want to claim Input gst

How can I utilise the balance in the Electronic credit ledger before it lapses

1. Can I transfer/utilise the ITC balance to another project
2. Whether another entity in the similar business line can be incorporated and ITC can be transferred to the new entity (Owner being the same for both the entities)
3. Can we flot a new firm and make to subcontract the work or to supply the materials as a trading firm
4. Is there any other way to claim gst .

Kindly advice on the same

Thanks in advance

[Shilpi Jain]

Credit once availed will not lapse. It can be carried forward for any number of years.

It can be used for paying GST liability of any other outward supply provided there is no restriction in the law for such usage.

So this credit cannot be used for paying the 7.5% tax in any new residential project.

[Shilpi Jain]

However, generally there will not be any huge overflow of credit in any project.

So please check if you have done credit reversals done for the sale of units done after the receipt of completion certifcate. Else this will be demanded by deparmtent with interest and penalty

AI Summary

Developer Queries Use of Electronic Credit Ledger for GST; Clarification on ITC Transfer and Restrictions Provided A developer under a Joint Development Agreement (JDA) inquires about utilizing the balance in their Electronic Credit Ledger for GST purposes. They ask if the Input Tax Credit (ITC) can be transferred to another project, a new entity, or a subcontracting firm. A respondent clarifies that credit, once availed, does not lapse and can be carried forward indefinitely for paying GST liabilities on outward supplies, unless restricted by law. However, it cannot be used to pay the 7.5% tax on new residential projects. They also advise checking for credit reversals after receiving a completion certificate to avoid penalties.