Question 44:
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 hel 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. (Provisions of paragraph 2 of this notification shall apply for valuation of this service) |
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)