A builder is into construction of flats. And decided to sell flats after obtaining of CC only and also not sold nor received any money before CC. Sale after CC is covered under Schedule III hence not liable for GST. However builder has not obtained GST registration as he does not have aggregate turnover. Is he liable for GST registration u/s. 24 and also liable to pay RCM under GST for inward supplies in case the 80:20 ratio is not meet?.
Thank you.
Builder Seeks Clarity on GST Registration and RCM Liability Under Section 24 for Post-Completion Certificate Sales A builder selling flats only after obtaining the Completion Certificate (CC) seeks advice on GST registration and liability under the reverse charge mechanism (RCM) if the 80:20 input ratio is unmet. Experts in the forum provide varied opinions. Some suggest that if the 80:20 ratio is not met, registration and RCM liability apply under Section 24 of the CGST Act. Others argue that since the builder sells only post-CC, registration is unnecessary, and RCM is not applicable. One contributor emphasizes that the builder's activities do not fall under certain GST notifications, thus exempting them from these requirements. (AI Summary)
Goods and Services Tax - GST
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