As per clarification issued by the Tax Research Unit, Ministry of Finance, Govt. of India vide F.No. 354/52/2018/TRU dated 07.05.2018, where the builder has collected higher GST from the buyer in earlier months, the excess can be adjusted by the builder against his future GST liability by issue of credit notes as the definition of taxable supply given in GSTR-3B excludes value of credit notes. Even then if the applicant is unable to adjust the same, the applicant may approach to appropriate forum which is GST Policy Wing.
Levy of GST— In the instant case, the applicant is engaged in Real estate activities with own or leased property, including buying, selling, renting and operating of self-owned or leased real estate such as apartment building and dwellings, non-residential buildings, developing and subdividing real estate into lots, development and sale of land and cemetery lots, operating of apartment hotels and residential mobile home sites.
The applicant in his application has sought advance ruling on following questions-
1. If any Flat buyer otherwise qualified to get lower rate of GST under CLSS Scheme, get interest Subvention certificate and/or Interest subsidy in his / her bank account after
1.1 Tower / Building get Completion Certificate from Competent Authority, or
1.2 Expiry of six months from end of financial year Can builder pass-on benefit of lower rate of GST to this flat buyer in such situation? And How?
2 How can builder get GST Credit adjustment if builder does not have future GST liability in this project?
3 Will builder be entitled to GST refund if amount is not adjustable from future liability of GST under the project?
As per clarification issued by the Tax Research Unit, Ministry of Finance, Govt. of India vide F.No. 354/52/2018/TRU dated 07.05.2018, where the builder has collected higher GST from the buyer in earlier months, the excess can be adjusted by the builder against his future GST liability by issue of credit notes as the definition of taxable supply given in GSTR-3B excludes value of credit notes.
The applicant appears to have been facing difficulty as there is time limit for issuance of credit notes as per section 34(2) of the CGST Act, 2017 and there are cases where buyer becomes eligible for CLSS after due time limit for issuance of credit notes. Moreover, due to obtaining completion certificate for certain towers, the output GST liability is reduced and is not sufficient enough to adjust this reduced tax liability through such credit notes.
Held that— The excess tax is to be adjusted as per clarification issued by Tax Research Unit, Ministry of Finance, Govt. of India vide F.No. 354/52/2018/TRU dated 07.05.2018. Even then if the applicant is unable to adjust the same, the applicant may approach to appropriate forum which is GST Policy Wing.
Question no. 2 & 3 is out of purview of advance ruling authority. As such, the question raised by the applicant is not answered.
As per clarification issued by the Tax Research Unit, Ministry of Finance, Govt. of India vide F.No. 354/52/2018/TRU dated 07.05.2018, where the builder has collected higher GST from the buyer in earlier months, the excess can be adjusted by the builder against his future GST liability by issue of credit notes as the definition of taxable supply given in GSTR-3B excludes value of credit notes. Even then if the applicant is unable to adjust the same, the applicant may approach to appropriate forum which is GST Policy Wing.
Levy of GST— In the instant case, the applicant is engaged in Real estate activities with own or leased property, including buying, selling, renting and operating of self-owned or leased real estate such as apartment building and dwellings, non-residential buildings, developing and subdividing real estate into lots, development and sale of land and cemetery lots, operating of apartment hotels and residential mobile home sites.
The applicant in his application has sought advance ruling on following questions-
1. If any Flat buyer otherwise qualified to get lower rate of GST under CLSS Scheme, get interest Subvention certificate and/or Interest subsidy in his / her bank account after
1.1 Tower / Building get Completion Certificate from Competent Authority, or
1.2 Expiry of six months from end of financial year Can builder pass-on benefit of lower rate of GST to this flat buyer in such situation? And How?
2 How can builder get GST Credit adjustment if builder does not have future GST liability in this project?
3 Will builder be entitled to GST refund if amount is not adjustable from future liability of GST under the project?
As per clarification issued by the Tax Research Unit, Ministry of Finance, Govt. of India vide F.No. 354/52/2018/TRU dated 07.05.2018, where the builder has collected higher GST from the buyer in earlier months, the excess can be adjusted by the builder against his future GST liability by issue of credit notes as the definition of taxable supply given in GSTR-3B excludes value of credit notes.
The applicant appears to have been facing difficulty as there is time limit for issuance of credit notes as per section 34(2) of the CGST Act, 2017 and there are cases where buyer becomes eligible for CLSS after due time limit for issuance of credit notes. Moreover, due to obtaining completion certificate for certain towers, the output GST liability is reduced and is not sufficient enough to adjust this reduced tax liability through such credit notes.
Held that— The excess tax is to be adjusted as per clarification issued by Tax Research Unit, Ministry of Finance, Govt. of India vide F.No. 354/52/2018/TRU dated 07.05.2018. Even then if the applicant is unable to adjust the same, the applicant may approach to appropriate forum which is GST Policy Wing.
Question no. 2 & 3 is out of purview of advance ruling authority. As such, the question raised by the applicant is not answered.