RESTRICTION ON INPUT TAX CREDIT TO DEVELOPERS, Goods and Services Tax - GST

[YUWRAJ KOTHARI]

IN CASE OF DEVELOPERS TAKEN FULL CREDIT OF ITC BUT SUPPLY/ SALES EFFECTED 50% ONLY AND THERE IS NO BALANCE IN INPUT CREDIT LEDGER.NOW OBTAIN OCCUPATION CERTIFICATE (O.C) THUS NOT REQUIRED TO PAY GST. WHETHER AMOUNTS TO EXEMPT SUPPLY POST O.C ??? AND THUS REQUIRE TO REVERSE PROPORTIONATE ITC TAKEN (REFER SEC 17(3))

ALSO WHETHER MEANING THAT CAN BE DEEMED INPUT AFTER OBTAINING O.C SHALL BE RESTRICTED SHOULD BE APPLIED???

Posts / Replies

[KASTURI SETHI]

Note the language of Sechedule-II, Section 7 of CGST Act.

".................................except where the entire consideration is received after issuance of completion-certificate, where required by the competent authority or after its first occupation, whichever is earlier."

The condition for eligibility of exemption from GST is that ENTIRE Consideration is received after......".

You are not eligible for exemption.

[HimansuSekhar Sha]

If some of the flats are not booked before occupancy the on those flats no gst is aspplicable. Reverse tyheproportionate credit.

[HimansuSekhar Sha]

On those flats you have received advance before occupancy certificate , you are liuabnle tyo past gst till final consideration