Tax Realty

GST IMPLICATIONS ON REFUND OF ADVANCES RECEIVED WITHOUT FURTHER SUPPLY   ISSUE:      M/S. ENTITY (REGISTERED WITH GST) has entered into agreement for construction and sale of Flat to a Customer. An amount of Rs.100lacs in FY 2019-20 and Rs.25lacs in FY 2020-21 were received by ENTITY (REGISTERED WITH GST) and same has been disclosed in the GST returns as advances in respective months. Subsequently in the FY 2020-21, the Customer wishes to cancel the said agreement and requesting refund for the said amount. M/s. ENTITY (REGISTERED WITH GST) require clarifications whether GST amount deposited to the government for Rs.5lacs in FY 2019-20 has to be deducted from the refund amount.   RULE:     As per sec.31 (3)(d) , a registered person shall, on receipt of advance payment with respect to any supply of goods or services or both, issue a receipt voucher or any other document, containing such particulars as may be prescribed, evidencing ...

  Basic GST information required in Real Estate.   From 01.04.2019 the effective rate of GST applicable on construction of residential apartments by promoters in a real estate project are Sl No. Description Effective Rate of GST ( After deduction of Value of Land ) 1 Affordable Residential apartments 1% on total consideration (Without ITC ) 2 Other than Affordable Residential apartments 5% on total Consideration (without ITC ) 3 Commercial Apartments in a Residential Real Estate Project. 5% on total consideration ( without ITC) 4 Commercial Apartments in a Real Estate Project. 12% on total consideration ( with ITC ) Conditions Mandatorily to comply  :- (Sl. No 3 of Notification No. 11/2017- CTR are mandatory)     A promoter shall purchase at least 80% of the value of...