REAL ESTATE SECTOR

[SK Krishna]

Hello sirs/madam,

Whether RCM CREDIT could be availed under new scheme / condition of tax rates (1% or 5%) for REP projects without ITC applicable from 01.04.2019?? Whether ITC & RCM credit are different in this scenario??

Kindly clarify. Thank you.

AI Summary

No RCM Credit Available Under New Tax Scheme for Real Estate Projects Without Input Tax Credit from April 2019. A participant inquired about the availability of Reverse Charge Mechanism (RCM) credit under the new tax rate scheme for Real Estate Projects (REP) without Input Tax Credit (ITC) applicable from April 1, 2019. Two responses clarified that when ITC is not available under the statutory condition, RCM credit is also not available. The new scheme for real estate projects does not permit ITC, which encompasses credit on both inward supplies and supplies under RCM.