Question

Subject :- Query for Builder Real Estate Related
Question -
Ø Hamara Client ne one Building (Residential Flats) Banaye hai
Ø GST Number Last Year August 2018 Main Liya Hai
Ø Completion Certificate May 2019 Main Mila hai
Ø We are Sale All the flats after COPLETION CERTIFICATE
Ø COPLETION CERTIFICATE ke bad Sale kiya hai to GST 5% Lagega Ya fir Paheleki tarah Tax Free Hoga

Answer

Facts of the Case:
Applicability of GST on sale of Flats after Completion Certificate.

Law Applicable:
SCHEDULE III OF CGST ACT
5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building.

SCHEDULE II OF CGST ACT

5(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.

Interpretation:
Sale of flats after obtaining Completion Certificate is pure sale of Building and thus as per Schedule III it is outside the ambit of GST only if entire consideration is received after completion certificate.

Because even if part consideration or any advance is received before completion certificate then as per Schedule II it is considered as Supply of services under GST.

Conclusion:
In your case as Flats are sold after completion certificate then it is not a supply under GST and thus GST will not be applicable  (Reply dt.13/06/2019)