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Question ID : 38129

GST Rate Applicability

Completion Certificate is received before 31st March, 2019. However, Advances for Flats sold before receipt of Completion Certificate are still pending upto 31st March,2019. What Rate of Tax on Advances received after 1st April, 2019 ? 1% / 5% or 12% Also, whether the option to Opt for New Scheme (1% / 5%) is available or not in the aforesaid case.

Posted by Harshal Punamchand Jain on May 07, 2019

Filed Under GST

Answer ID : 76537

For ongoing projects, the developer-promoter can choose to continue with old scheme of charging GST @ 12%/ 8% with availment of ITC or new scheme of charging GST @ 5%/ 1% with no ITC. As per the declaration of choosing the scheme ,advance will also come in to the preview of of the same rate

Posted by CA. BISHT RAKESH on May 07, 2019
Answer ID : 76541

SINCE COMPLETION CERTIFICATE HAS BEEN RECEIVED, FRESH BOOKINGS AFTER 1ST APRIL WILL NOT BE LIABLE TO GST AS THE SALE WILL BE OF IMMOVABLE PROPERTY NOT LIABLE TO GST. REG. THE BOOKINGS ALREADY RECEIVED, THE AMOUNTS AS AND WHEN RECEIVED WILL BE LIABLE TO GST. YOU CAN OPT FOR THE OLD RATE OF 12% OR THE NEW RATE OF 5%. YOU WILL HAVE TO REVERSE PROPORTIONATE IPT ON THE UNSOLD FLATS AS THEY ARE NOT LIABLE TO GST

Posted by CA. VENKITARAMAN K V on May 07, 2019