ITC UTILISATION AFTER REVERSAL UNDER REAL ESTATE

[Narayan Pujar]

For a real estate project, under GST, Rule 42 requires reversal of credit after receipt of completion certificate. Suppose after reversal, I am still left with considerable ITC. Can it be utilised for another project under the same GSTIN?

I believe, once reversal is done, the remaining ITC becomes a part of the common pool of ITC and no more carries the project specific tagging. Hence, the remaining ITC can be used in another project also.

Please guide.

AI Summary

Input tax credit reversal under real estate projects raises whether residual ITC can move into the common credit pool for use elsewhere. Under GST, a query raises whether input tax credit reversed after receipt of a completion certificate in a real estate project may still be used for another project registered under the same GSTIN. The issue is framed around Rule 42 and the treatment of residual credit after project-specific reversal. The stated view is that, once the reversal is made, the balance ITC ceases to remain project-tagged and becomes part of the common ITC pool.