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

GST on construction services: inward supplies and RCM remain payable even where flats are sold after completion certificate.
If the entire consideration for sale is received only after issuance of the completion certificate or first occupation, the outward supply of flats is not taxable under the Schedule II exception; however, inward supplies used in construction remain taxable and must be paid for, including under the reverse charge mechanism, and any advance paid before the completion certificate triggers GST liability.