TaxTMI 
TaxTMI 
An individual engages the builder to construct 6 flats on his land and proposes to sell 3 flats before the completion of the construction. The query is what is the tax rate to be adopted by the individual for the proposed sale of a flat? Whether 5% on the whole consideration or 18% on the construction value and avail an ITC charged by the builder to the seller.
GST on construction service
04 Nov 2022 
3 Replies 
1711 Views Asked by
GST rate for residential flat without input tax credit applies to whole consideration on pre completion sales under advisory view.
For a residential flat sold before completion, the applicable GST is the reduced rate applied to the whole consideration with no entitlement to input tax credit; this represents non binding advisory views, and a further question remains whether reverse charge applies to the unsold flats. (AI Summary)
For a residential flat sold before completion, the applicable GST is the reduced rate applied to the whole consideration with no entitlement to input tax credit; this represents non binding advisory views, and a further question remains whether reverse charge applies to the unsold flats. (AI Summary)