TaxTMI 
TaxTMI 
ITC OF GST CHARGED BY DEVELOPER ON CONSTRUCTION SERVICE
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....TC OF GST CHARGED BY DEVELOPER ON CONSTRUCTION SERVICE<br> Query (Issue) Started By: - NAMAN DOKANIA Dated:- 10-6-2021 Last Reply Date:- 18-6-2021 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>1. When do Developer charges GST on Flats given to landlord at the price of the first booking?? At the time of Date of AGREEMENT or on the date of completion certificate?? 2. If It is on the date ....
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....of completion certificate, then how can we plan so that the landowner can take the input tax credit of the gst charged by the builder?? Reply By Rajagopalan Ranganathan: The Reply: Sir, According to para 1A of Notification No. 12/2017-D.T. (Rate) dated 28.6.2017 as amended "Value of supply of service by way of transfer of development rights or FSI by a person to the promoter against consid....
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....eration in the form of residential or commercial apartments shall be deemed to be equal to the value of similar apartments charged by the promoter from the independent buyers nearest to the date on which such development rights or FSI is transferred to the promoter. gst is payable by the developer on the price charged by the him from the independent buyers nearest to the date on which such develop....
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....ement rights nor FSI is transferred to the promoter. In view of the above, consideration of date of completion certificate for determining the value of flats given to the land owner will not arise. Therefore Reply By NAMAN DOKANIA: The Reply: Sir, My Question pertains whether the builder i.e. Developer will charge GST on flats given to Landowner on the date of completion certificate or on the ....
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....date of Agreement? Please re-iterate on this point please. Reply By Shilpi Jain: The Reply: The liability to pay is on completion though there is no bar on the developer from discharging the liability before this date by issuing a tax invoice to enable the landowner to take credit. This is also a proposed clarification in the 43rd council meeting. Reply By Rajagopalan Ranganathan: The Reply: S....
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....ir, If the flats are given to land owner after obtaining completion certificate no gst is payable by the developer. gst is payable only under construction flats handed over to the land owner. Reply By ABHISHEK TRIPATHI: The Reply: Dear Sh. Naman Ji, GST will be charged in accordance with section 12. In your case, It may be the date of invoice or date of payment. Now coming to ITC, you may tak....
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....e ITC in accordance with Section 16/17, there is no bar on ITC subject to these provisions. Note: If you have unsold flat(s) at the time of getting the completion certificate then you have to reverse the ITC proportionately. Usually, many developers don't reverse the proportionate ITC. Reply By ABHISHEK TRIPATHI: The Reply: Correction: Few developer don't reverse ITC. Reply By Shilpi Jain:....
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.... The Reply: For the units handed over to the landowner, whether it is done before or after completion would not affect the taxability. It would be liable. Also the developer can discharge this liability on the date of completion. Clarity is brought by the amendment that the liability can be discharged even before the completion date<br> Discussion Forum - Knowledge Sharing ....