TaxTMI 
TaxTMI 
An agent, a Pvt Ltd company, does the business of purchase & sale of underconstructed flat. He gave advance for the underconstructed flat for say Rs. 80 lakhs, and after 10 months sold his right for Rs. 110 Lakhs. Will GST be leiveid under the same? if yes, then what will be HSN/SAC/Rate . If any provision/circular is quoted, that woudl be of much help, with explanation thereof.
GST on sale of right in underconstructed flat by an agent
31 Jul 2025 
4 Replies 
465 Views Asked by
GST on sale of rights in under-construction flats: taxability depends on broker versus trader treatment and applicable rate.
GST taxability depends on the agent's role: as a broker, commission is taxable under SAC 9971; as a trader selling rights on own account, the transfer is a taxable supply under Section 7(1)(a) and applicable rate notifications. Resale prior to completion certificate or first occupation is not covered by Schedule II exclusion and is taxable. Commentators note the margin scheme may apply where no sale agreement exists, otherwise the full consideration may attract the notified rate. The question of claiming input tax credit for tax paid to the builder when remitting output tax is also raised. (AI Summary)
GST taxability depends on the agent's role: as a broker, commission is taxable under SAC 9971; as a trader selling rights on own account, the transfer is a taxable supply under Section 7(1)(a) and applicable rate notifications. Resale prior to completion certificate or first occupation is not covered by Schedule II exclusion and is taxable. Commentators note the margin scheme may apply where no sale agreement exists, otherwise the full consideration may attract the notified rate. The question of claiming input tax credit for tax paid to the builder when remitting output tax is also raised. (AI Summary)