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

Input tax credit retention: ITC may be carried forward but not usable for certain residential project tax charges.
Input tax credit in the electronic credit ledger does not lapse and may be carried forward indefinitely; it may be used to pay GST on outward supplies unless law expressly restricts such use. The credit cannot be applied to the specified tax charge in new residential projects. Check whether credit reversals were required on sales after issuance of a completion certificate, as failure to reverse where mandated may result in departmental demands with interest and penalty.