How to report payments for builder in GSTR-1?

[Mohit Mrinal]

What is correct in GSTR-1 for real estate? Showing invoices at every stage of construction and reporting it in B2C or reporting all the payments as advances in table 11A.  Also, if it is reported as advances. What impact will it have in a rare case when an agreement is cancelled after 2 years. Can the refund voucher in this case be created even after 2 years and subsequently tax liability can be adjusted in next tax period? Or is there any time limit for issuing it as it’s for credit note. As per circular Circular No. 188/20/2022-GST dated 27th December, it does allow the buyer to claim for refund rather than the builder. So this might infer that  the credit notes timeline has expired in case of tax invoices issued. But what about when we report it as advances and not as tax invoices? Kindly advise in both the cases of tax invoice/ receipt voucher if both the cases applicable.

AI Summary

GSTR-1 reporting for real estate: invoice per construction milestone or advances affects refund and credit-note treatment.
Issuance of tax invoices should follow contractual milestones and be reported accordingly in GSTR-1; treating receipts as advances in Table 11A is common but departs from statutory invoicing norms and may attract penalties. Where a residential unit under construction is sold to a registered buyer who provides GSTIN, reporting as B2B is the compliant approach even if ITC is blocked; absent GSTIN, builders often report as B2C, which affects treatment of credit notes and refunds.