GST on Purchases made from unregistered persons.

[Rajesh Kumar]

Sir/Madam

Please inform whether at least 80% is necessarily required to purchase from registered persons by a builder/ developer even if he sales his flats/ buildings after receiving of completion certificate when he is not required to pay GST. In this case, if he purchases more than 20% from unregistered persons, is he required to pay under RCM for differences even after sale after completion certificate?

AI Summary

Procurement threshold for promoters affects reverse charge liability only until issuance of the completion certificate.
The procurement threshold in the concessional rate notification applies only up to the date of issuance of the completion certificate or first occupation; any shortfall in purchases from registered suppliers during that period attracts tax on a reverse charge basis by the promoter. Sales after the completion certificate fall under Schedule III as neither goods nor services, so the notification's threshold and related reverse charge obligations do not apply after that date.