Question 30: An Individual intends to
start a new business of flat construction after purchase a piece of land and
purchase/sale of ready to move flat. whether he is liable to get the
registration under GST Act, if yes then what rate will be applicable and will be
eligible to get the ITC paid on purchase the goods and services '
Answer If he is selling flats and received entire consideration after
completion or after first occupation then there will be no Tax as per schedule
III clause 5 it is neither supply of goods nor supply of service and if he
supplies on this kind of service then does not require registration.
But if he is selling flats and received consideration before completion or
before first occupation as per clause (b) of paragraph 5 of Schedule II then tax
will be charged as follow :-
Notification No. 11/2017-Central Tax (Rate)
|
3. Heading 9954 |
|
|
(i) Construction of a
complex, building, civil structure or a part thereof, including a
complex or building intended for sale to a buyer, wholly or partly,
except where the entire consideration has been received after issuance
of completion certificate, where required, by the competent authority or
after its first occupation, whichever is earlier. |
9%/18% |
Notification No.
11/2017-Central Tax (Rate)
In case of supply of service specified in column (3), in item (i); sub-item (b),
sub-item (c), sub-item (d), sub-item (da) and sub-item (db) of item (iv);
sub-item (b), sub-item (c), sub-item (d) and sub-item (da) of item (v); and
sub-item (c) of item (vi), against serial number 3 of the Table above, involving
transfer of land or undivided share of land, as the case may be, the value of
such supply shall be equivalent to the total amount charged for such supply less
the value of transfer of land or undivided share of land, as the case may be,
and the value of such transfer of land or undivided share of land, as the case
may be, in such supply shall be deemed to be one third of the total amount
charged for such supply.
Explanation-For the purposes of this paragraph, total amount means the sum total
of,-
(a) consideration charged for aforesaid service; and
(b) amount charged for transfer of land or undivided share of land, as the case
may be including by way of lease or sublease.] (Reply dt. 02/4/2018)