GST credit on pre Emi interest/assured rental/late possession penalty as special discount after supply of services us15(3)(b) of CGST act., Goods and Services Tax - GST

[aditya Kumar]

If we pay as per agreement to sale, monthly pre Emi interest/assured rental/late possession penalty on sale of under construction flats to customers, Can we reverse GST by issuing credit note on pre Emi interest/assured rental/late possession penalty as special discount after supply of services us15(3)(b) of CGST act.?

If yes then,how much time is available for issuing credit note 1 year ot last date of filing annual return?

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Aditya

Posts / Replies

[kollengode venkitaraman]

ASSUMING YOU ARE A BUILDER AND YOU ARE LIABLE TO PAY GST ON THE CONSIDERATION RECEIVED FROM THE CUSTOMERS ON THE AGREEMENT TO SELL UNDER CONSTRUCTION BUILDING, YOU CAN NOTGIVE CREDIT NOTE FOR THE ASSURED RENTAL/PENALTY FOR DELAYED DELIVERY. THE CUSTOMER HAS TO RAISE A BILL FOR THIS ON YOU AND ASSUMING THE TOTAL AMOUNT IS BELOW RS. 20 LAKHS, NO GST NEED BE PAID BY HIM. RCM WILL NOT NOW APPLY TILL JUNE 2018. YOU HAVE TO PAY GST ON THE FULL CONTRACTED PRICE OF THE BUILDING.