GST ON RREP ON ONGOING PROJECT 01-04-2019 IF DECLARATION IN FORM IV NOT SUBMITTED

[NIRANJAN MOHANTY]

AS PER Notification No. 03/2019-Central Tax (Rate) one declaration needs to be submitted before 10-05-2019.

What will be the consequence if the declaration not submitted and tax @12% was paid earlier with input credit.

If rate changed by virtue of this ammendment to 5% then excess amount paid earlier can be claimed as refund or not?

AI Summary

Deemed opt out of input tax credit triggers reversal obligations and potential refund adjustments via credit notes to customers.
Failure to file the prescribed declaration in Annexure IV within the statutory period results in the taxpayer being deemed to have opted not to avail Input Tax Credit for the ongoing project; ITC claimed contrary to that deemed option must be reversed and cannot be sustained merely by voluntary payment. A developer may seek to adjust excess tax paid by issuing credit notes to customers and pursuing refund or adjustment under the statutory refund and recovery framework, subject to applicable procedural conditions and potential disputes.