Question48: The builders have occupancy
certificate completed the construction purpose. So i want to know that is tax
rate is liable or else it is exempted (tax free).
Answer As per clause 5 of Schedule II following shall be treated as
supply of service:
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(b) 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.
There is no term Occupancy certificate in law. If entire consideration is
received after issuance of completion certificate or after first occupancy
whichever is earlier, then only it is exempt otherwise if any advance is
received before issue of certificate or first occupancy then it is considered as
supply of service and GST will be charged. (Reply dt. 06/06/2018)