TMI BlogGST ON UNDER CONSTRUCTION FLAT PURCHASED & SOLD BY BUILDER AS AN INVESTMENTX X X X Extracts X X X X X X X X Extracts X X X X ..... Respected Experts, Your Opinion is required on following Querry. Facts of the Case My Client is a Partnership Firm and their Nature of Business is Builders Developers. They want to Purchase an Under construction Residential Unit (1 Unit) by Paying Applicable GST. If they resale this Residential Unit before receiving Occupancy Certificate, then what will be Rate of GST Applicable to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... em ? Is it 18% or 12% (i.e. after allowing 1/3rd Deduction for Land Component in the unit Value) ? Is GST paid at the time of Purchase of this unit will be allowed as ITC ? - Reply By Himansu Sekhar - The Reply = Is it possible that sale deed will be made for an under construction building? - Reply By KASTURI SETHI - The Reply = Yes. The supply/sale of under construction property is legally ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed. It is also practically possible. In the above scenario, rate of GST is 12%. Yes. ITC is permissible under Works Contract Scheme/Service. Not hit by Section 17(5) of CGST Act . - Reply By Kalpesh Shah - The Reply = Kasturi Sir Thank you for your views. But if my client is entering into this transaction as an Investor and not as a builder Developer, then too it will get 1/3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd Deduction for Land Component ? - Reply By KASTURI SETHI - The Reply = Investor is behind the curtain. He is not supplier of service. - GST ON UNDER CONSTRUCTION FLAT PURCHASED & SOLD BY BUILDER AS AN INVESTMENT - Query Started By: - Kalpesh Shah Dated:- 19-3-2021 Goods and Services Tax - GST - Got 4 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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