Input Tax Credit reversal under rules 42/43, Goods and Services Tax - GST

[Ethirajan Parthasarathy]

It is not clear when the Input Tax Credit reversal is to be done as per Rule 42 and Rule 43 of CGST Rules for Villa Projects.

In the case of villa projects, one villa might have been completed and even occupied while many other villas would not have been completed nor sold also.

Invariably there is no statutory requirement to obtain Completion Certificate (CC) or Occupancy Certificate (OC).

Please clarify.

Posts / Replies

[KASTURI SETHI]

As per serial no. 5 (b) and Explanation (1) of Schedule-II (Section 7) of CGST Act, Completion Certificate by the Competent Authority is required.

[Shilpi Jain]

Pls check whether the project is registered under RERA as one complete project comprising of all the villas together?

In such case entire project CC would be required.

In any case the reversal under rules can be possibily be done only after all the villas are completed.

Further facts required to better comment