GST on inward supplies for construction of an apartment

[D Sridhar]

Hi All, is GST to be paid on all inward supplies for an residential apartment where the flats are sold after receiving OC where no GST is payable. Or, can we, do not pay GST on inward supplies where the builder would like to sell the flat only after OC. Appreciate if anyone can through light on this. What approach to be adopted where the GST is not payable on sale of flats to reduce the cost of construction

AI Summary

Builder must pay GST on inward supplies despite exempt residential apartment sales under Schedule II CGST Act A builder inquired about GST liability on inward supplies when constructing residential apartments sold after obtaining occupancy certificate (OC), where no GST applies on flat sales. Legal expert clarified that per Schedule II of CGST Act, construction services are exempt from GST only when entire consideration is received after completion certificate issuance or first occupation. However, GST must still be paid on all inward supplies including goods and services under reverse charge mechanism, as there is no exemption on purchases even when outward supplies are non-taxable. Another expert noted that any advance payment before completion certificate triggers GST liability.