QUESTION
What is the SAC code of the sales of flats or villas?
ANSWER
Facts of the case:
SAC code of the sales of flats or villas
Law Applicable: SCHEDULE II OF
CGST ACT
5. Supply of
services
The following shall be treated as supply of service, namely:'
----------------------------
(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.
SCHEDULE III OF CGST ACT
ACTIVITIES OR TRANSACTIONS WHICH SHALL BE TREATED NEITHER AS A SUPPLY OF GOODS NOR A SUPPLY OF SERVICES
5. Sale of land and,
subject to clause (b) of paragraph 5 of Schedule II, sale of building
Reply : SAC code for sale of flats or villas is 995411:
| 4 |
Group 99541 |
Construction services of buildings | |
| 5 |
995411 |
Construction services of single dwelling or multi dwelling or multi-storied residential buildings |
If the flats or villas
are sold before receipt of completion certificate/First occupation:
This case is covered under clause 5(b) of Schedule II and is treated as supply
of services and will be taxable at the rates as specified in Notification
11/2017 Central Tax (Rate).
However if flats or villas are sold after receipt of completion
certificate/First occupation: This case is covered under clause 5 of
Schedule III and is treated as neither supply of goods nor supply of services.
Since the transaction is out of GST, thus provisions of GST will not be
applicable and therefore invoice can be issued without mentioning of SAC code. (Reply dt.
24/06/2021)