Builder is developing one residential complex. In parking area builder had made shops. Now shops are ready to sell but residential complex is under construction.
Whether selling of shop attract GST as residential complex is in under construction and completion certification has not been granted.
Or shop is exempt from GST as it is in ready possession??
As per Notification No. 11/2017-Central Tax (Rate) GST will be applicable at the rate 18% on 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 in following two condition.
Therefore GST will not be levied—
1) where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority; or
2) After its first occupation, whichever is earlier?
As the completion certification has not been granted yet, if entire consideration is received after first occupation, no GST will attract.