{"id":611,"date":"2015-11-21T12:44:43","date_gmt":"2015-11-21T12:44:43","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=611"},"modified":"2021-12-20T23:12:38","modified_gmt":"2021-12-20T17:42:38","slug":"service-tax-update-2","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/service-tax-update-2\/","title":{"rendered":"GST Applicability on under Construction Flat Transactions"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d0be0a7cb3c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d0be0a7cb3c\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/service-tax-update-2\/#GST_Applicability_on_under_Construction_Flat_Transactions\" title=\"GST Applicability on under Construction Flat Transactions\">GST Applicability on under Construction Flat Transactions<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/service-tax-update-2\/#Situation_in_Case_of_Services_Tax\" title=\"Situation in Case of Services Tax\u00a0\">Situation in Case of Services Tax\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/service-tax-update-2\/#Situation_in_Case_of_GST\" title=\"Situation in Case of GST \u00a0\">Situation in Case of GST \u00a0<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/service-tax-update-2\/#What_are_the_reason_of_No_GST_applicable_on_ready_to_move_flats\" title=\"What are the reason of No GST applicable on ready to move flats?\">What are the reason of No GST applicable on ready to move flats?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/service-tax-update-2\/#GST_Rate_ITC_Applicable_on_Real-Estate_transaction\" title=\"GST Rate &amp; ITC Applicable on Real-Estate transaction\">GST Rate &amp; ITC Applicable on Real-Estate transaction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/service-tax-update-2\/#What_is_date_of_payment_liability_of_GST_on_FSI_TDRLP_on_portion_of_unsold_unit_of_project\" title=\"What is date of payment liability of GST on FSI\/ TDR\/\/LP on portion of unsold unit of project\u00a0\">What is date of payment liability of GST on FSI\/ TDR\/\/LP on portion of unsold unit of project\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/service-tax-update-2\/#GST_Rate_on_unbooked_residential_apartment_for_FSI_TDRLP_claimed_as_exempt\" title=\"GST Rate on unbooked residential apartment for FSI\/ TDR\/\/LP claimed as exempt\">GST Rate on unbooked residential apartment for FSI\/ TDR\/\/LP claimed as exempt<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><a style=\"font-size: 16px;\" href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/42.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9049\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/42.png\" alt=\"www.carajput.com; Service Tax Update\" width=\"874\" height=\"495\" \/><\/a><\/h2>\n<h1><span class=\"ez-toc-section\" id=\"GST_Applicability_on_under_Construction_Flat_Transactions\"><\/span><span style=\"color: #000080;\">GST Applicability on under Construction Flat Transactions<\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2><span class=\"ez-toc-section\" id=\"Situation_in_Case_of_Services_Tax\"><\/span><span style=\"color: #ff0000;\"><strong>Situation in Case of Services Tax\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #000080;\"><strong>No <a href=\"https:\/\/www.caindelhiindia.com\/blog\/recent-amendments-in-service-tax\/\">Service Tax<\/a> on Sale of Flats after issue of Occupancy Certificate\u00a0<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Recently, Press Information Bureau of Ministry of Finance has issued a press release dt. 26th October, 2015 to resolve a long standing issue relating to levy of Service <a href=\"https:\/\/carajput.com\/blog\/taxes-on-income-received-from-blogging-under-income-tax\/\">Tax<\/a> on sale of flats\/dwellings etc. after issue of occupancy certificate but before issue of completion certificate in areas under the jurisdiction of Municipal Corporation of Greater Mumbai i.e. Brihanmumbai Municipal Corporation (BMC).<\/p>\n<p style=\"text-align: justify;\">In the said release, it has been conveyed to the <a href=\"https:\/\/carajput.com\/services-tax-registration.php\">Service Tax<\/a> Authorities in Mumbai, that sale of flats\/dwellings etc., where the entire consideration is received after issue of occupancy certificate by BMC, leading to a mere transfer of title in immovable property, would fall outside the definition of \u201cService\u201d as per Section 65B (44) of the Finance Act, 1994, and is therefore, not taxable.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Situation_in_Case_of_GST\"><\/span><span style=\"color: #ff0000;\"><strong>Situation in Case of GST <\/strong><\/span><span style=\"color: #ff0000;\"><strong>\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Honorable Karnataka&#8217;s Advance Ruling Authority (AAR) has upheld &amp; Confirm that Consideration amounts received for sale of shares in flat will <b>not<\/b> attract GST in case Complete Sale Consideration is paid after issuance of completion certificate.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-20301\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/GST-on-flat.png\" alt=\"GST on under construction flat\" width=\"835\" height=\"886\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/GST-on-flat.png 593w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/GST-on-flat-283x300.png 283w\" sizes=\"(max-width: 835px) 100vw, 835px\" \/><\/p>\n<p><span style=\"color: #000080;\">So we can say that no GST on Sale of Flats after issue of Occupancy Certificate\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_reason_of_No_GST_applicable_on_ready_to_move_flats\"><\/span><span style=\"color: #000080;\"><strong style=\"font-size: 16px;\">What are the reason of No GST applicable on ready to move flats?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"wWOJcd\" tabindex=\"0\" role=\"button\" aria-controls=\"exacc_-LDAYZv1Nveh4t4Proy_0A863\" aria-expanded=\"true\" aria-labelledby=\"exacc_-LDAYZv1Nveh4t4Proy_0A862\">\n<div class=\"r21Kzd\" data-hveid=\"CGYQAQ\" data-ved=\"2ahUKEwib0Yfj5_L0AhX3kNgFHS7GD_oQuk56BAhmEAE\">\n<ul>\n<li><span style=\"color: #000000;\">Goods and Services Tax on real estate is not applicable for sale of ready to move in flats, property\u00a0 going resale\u00a0 and purchase or sale of land. As per the Goods and Services Tax Act, <b style=\"font-size: 16px;\">purchase and sale activity does not include\u00a0 supply of<\/b><span style=\"font-size: 16px;\"> services\/goods. So there is no Goods and Services Tax is applicable to these kind of real estate transactions.<\/span><\/span><\/li>\n<li>It should be noted that Flat was booked under construction and thereafter construction has been completed after <span style=\"color: #000000;\">Goods and Services Tax Act come in to forces\/<\/span>implementation, and <span style=\"color: #000080;\"><strong>Occupancy Certificate\u00a0 or completion certificate <\/strong><\/span>has been received post implementation of GST then User\/ owner is liable to pay GST.<\/li>\n<li>Finally, Its means to say that under construction transactions we needed to pay <span style=\"color: #000000;\">Goods and Services Tax.\u00a0<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"GST_Rate_ITC_Applicable_on_Real-Estate_transaction\"><\/span>GST Rate &amp; ITC Applicable on Real-Estate transaction<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-20302\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/Chart-of-GST-rate.png\" alt=\"Chart of GST rate on real estate \" width=\"852\" height=\"448\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/Chart-of-GST-rate.png 599w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/Chart-of-GST-rate-300x158.png 300w\" sizes=\"(max-width: 852px) 100vw, 852px\" \/><\/p>\n<\/div>\n<\/div>\n<h3><span class=\"ez-toc-section\" id=\"What_is_date_of_payment_liability_of_GST_on_FSI_TDRLP_on_portion_of_unsold_unit_of_project\"><\/span><span style=\"color: #000080;\"><strong><u>What is date of payment liability of GST on FSI\/ TDR\/\/LP on portion of unsold unit of project\u00a0<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Date of liability of payment of GST shall arise on the date of completion or 1st occupation of the hosing project, as the case may be, whichever is earlier<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"GST_Rate_on_unbooked_residential_apartment_for_FSI_TDRLP_claimed_as_exempt\"><\/span><strong><u>GST Rate on unbooked residential apartment for <\/u><u>FSI\/ TDR\/\/LP<\/u><u> claimed as exempt<\/u><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Other Than Affordable housing unit-\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <strong>5% (without input tax credit )<\/strong><\/li>\n<li>For Affordable Housing unit &#8211;\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<strong>1% (without input tax credit )<\/strong><\/li>\n<li>In case commercial apartments such as shops, offices etc In a residential real estate project (RREP) (carpet area of Commercial apartment is not more then 15% of total carpet area of all apartment :\u00a0<strong> 5% (without input tax credit )<\/strong><\/li>\n<li>Above commercial apartments can also opt for ITC credit availability : <strong>12% (with input tax credit related to commercial apartment)<\/strong><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-20303\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/GST-Rate-on-afordable-housing.jpeg\" alt=\"GST Rate on affordable housing transitions\" width=\"960\" height=\"489\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/GST-Rate-on-afordable-housing.jpeg 314w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/GST-Rate-on-afordable-housing-300x153.jpeg 300w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><\/p>\n<p><strong>Popular Articles :<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/carajput.com\/blog\/e-invoice-mechanism-under-the-gst\/\">E-Invoice Mechanism under the GST<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/blocking-the-e-way-bill-creation-system-if-fails-to-file-gstr-3b-gstn\/\">Blocking\/Unblocking the E-Way Bill creation system if fails to file GSTR-3B: GSTN<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/reasons-for-the-movement-of-goods-under-the-gst\/\">Reasons for the Movement of Goods under the GST<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/learn\/due-date-for-filling-annual-return.html\">The due date for filing the Annual return<\/a><\/li>\n<\/ul>\n<p>For query or help, contact: <a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0\u00a0or call at 9555555480<\/p>\n","protected":false},"excerpt":{"rendered":"<p>GST Applicability on under Construction Flat Transactions Situation in Case of Services Tax\u00a0 No Service Tax on Sale of Flats after issue of Occupancy Certificate\u00a0 Recently, Press Information Bureau of Ministry of Finance has issued a press release dt. 26th October, 2015 to resolve a long standing issue relating to levy of Service Tax on &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[3513,3514,3516,3517],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/611"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=611"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/611\/revisions"}],"predecessor-version":[{"id":20311,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/611\/revisions\/20311"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}