Indore (Madhya Pradesh): Chartered accountant Krishna Garg said that GST is levied on any commercial and residential building only when the construction work is going on and the completion certificate has not been obtained from the local authority.
No tax is payable on the units sold after the completion certificate is received because in such a situation it takes the form of immovable property which is outside the purview of GST.
He was addressing a seminar, which was organised to explain the complex provisions of GST rules applicable on the construction and sale of commercial and residential complexes. It was organised by CA Indore Branch and Tax Practitioners Association.
Garg said that the government has tried to simplify GST from April 1, 2019, but if experts agree, many conditions have been added along with simplifying these rules. Now the builders are finding it difficult to follow them. He said that if a unit is sold before the completion certificate comes, then GST will have to be paid on the full value even if some money comes after the completion.
He also said that since the city does not come under the definition of a metro city, therefore, if the total area of a residential unit here is less than 90 square meters (969 square feet) and its consideration amount is less than 45 lakhs, then it is eligible for affordable housing.