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Credit Reversal for real estate project completed after 01st April 2019 - Goods and Services Tax - GSTExtract Credit reversal for real estate project completed after 01st April 2019. CASE: The real estate project has been completed and the completion certificate received in July-2020 and the credit availed in relation to such project from 1st July 2017 to 30thJun 2020. Whether the credit availed during the period starting from 1st July 2017 to 30thJun 2020 need to be considered for reversal purpose for the unsold flats or the credit availed during the period starting from 1st Apr 2019 to 30th Jun 2020 need to be considered for reversal purpose. The present case is as follows:- Carpet Area on the date of Completion (31/07/2020) Carpet Area for Booked (Sold) Flats: 1800 Sq. Mtrs Carpet Area for Unsold Flats : 1100 Sq. Mtrs Total Carpet Area : 2900 Sq. Mtrs Credit Availed in FY 2017-18 (Jul-17 to Mar-18) = ₹ 60 Lakhs Credit Availed in FY 2018-19 = ₹ 33 Lakhs Credit Availed in FY 2019-20 = ₹ 13 Lakhs Credit Availed in FY 2020-21 (Apr-20 to Jun-20) = ₹ 1 Lakhs Total Credit availed for the project (from Jul-2017 till completion) = ₹ 107 Lakhs Completion certificate received in July-2020. (Note: Continue with old rate compare to changes in rate for Real Estate project from 01.04.2019.) Query: The total amount of total credit to be reversed in GST for the above project which has been completed in July-2020 will be ₹ 107 Lakhs* 1100/2900 = ₹ 40.58 Lakhs comprising period starting from 01st July 2017 to 30th Jun 2020?? As per another opinion, the credit should be reversed for the period 01st April 2019 to 30th Jun 2020. In that case, the reversal amount will be ₹ 14 Lakhs*1100/2900 =₹ 5.31 Lakhs? Which option is the correct one?
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