Thombre and Associates - Blog #GSTThombre and Associates - Blog #GSThttps://www.taass.in/blogs/tag/gstTue, 18 Aug 2026 22:47:39 -0700http://zoho.com/sites/<![CDATA[GST on Sale of Buildings]]>https://www.taass.in/blogs/post/GST-on-Sale-of-Buildings
GST on Building Sales: An Interactive Guide

GST on Sale of Buildings

An Interactive Guide to Understanding Tax Implications in India

The General Rule: Schedule III of the CGST Act, 2017

The Central Goods and Services Tax (CGST) Act specifies certain activities that are treated neither as a supply of goods nor a supply of services. As per Paragraph 5 of Schedule III of the Act, the "sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building" is excluded from the scope of "supply". This means if a completed building is sold, and the entire payment (consideration) is received after the issuance of a completion/occupancy certificate, no GST is applicable.

Scenario Explorer

Has the Occupancy Certificate (or Completion Certificate) been issued by the competent authority at the time of the transaction?

What portion of the total payment for the property was received before the OC was issued?

0%100%
0% received before OC

Was the sale deed registered before or after the OC was issued?

Analysis

Common Scenarios Explained

Situation: An individual purchases a ready-to-move-in apartment. The Occupancy Certificate (OC) has already been issued. The entire payment is made and the sale is registered after the OC date.

GST Implication: No GST is applicable.

Reason: This is a straightforward sale of a completed building where the entire consideration is received after the completion certificate. It falls squarely under Schedule III of the CGST Act and is not considered a supply.

Situation: A buyer books an under-construction flat and pays 20% of the value as an advance. The builder receives the OC a few months later. The remaining 80% is paid and the sale is registered after the OC is issued.

GST Implication: GST is applicable only on the 20% portion paid before the OC.

Reason: Any consideration received before the OC is for the supply of a service (construction service) as per Schedule II. The portion of consideration received after the OC is for the sale of a completed building, which is not a supply. Therefore, GST is levied only on the pre-OC payment.

Situation: A buyer purchases an under-construction property. The entire payment is made and the sale is registered before the builder applies for or receives the OC.

GST Implication: GST is applicable on the entire transaction value.

Reason: Since the entire consideration is received before the issuance of the completion certificate, the transaction is treated as a supply of construction services under Schedule II of the CGST Act. The exclusion under Schedule III does not apply.

Glossary

Supply
In GST law, "supply" is the taxable event. It includes all forms of supply of goods or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made for a consideration.
Consideration
Refers to the payment made or to be made, whether in money or otherwise, for the supply of goods or services.
Occupancy/Completion Certificate (OC)
A legal document issued by a local government agency or planning authority, certifying that a building is compliant with all applicable building codes and laws, and is in a condition suitable for occupancy.
Schedule II & III
Schedules to the CGST Act. Schedule II classifies certain activities as either a supply of goods or a supply of services. Schedule III lists activities that are not considered a supply at all.

Disclaimer: This tool is for informational and educational purposes only. It should not be considered as legal or financial advice. Please consult with a qualified tax professional for advice specific to your situation.

]]>Sat, 11 Oct 2025 10:04:37 +0500<![CDATA[How to Respond to a GST Scrutiny Notice]]>https://www.taass.in/blogs/post/how-to-respond-to-a-gst-scrutiny-notice
How to Reply to GST Notice ASMT-10 | Mismatch & Scrutiny Guide

How to Respond to a GST Scrutiny Notice

The GST department increasingly uses data analytics to compare returns (GSTR-1, 3B, 2B) and find discrepancies. If you've received a notice, typically in Form ASMT-10, this guide provides a clear framework and strategy to help you formulate an effective reply and resolve any tax mismatch issues.

Decoding Your GST Notice: Common Discrepancies

Click on the tabs below to understand the common types of mismatches flagged by the GST department's systems and how to prepare your reply.

Your 4-Step Response Process

Follow this structured approach to handle the notice professionally. Click each step for more details.

1

Acknowledge & Analyze

2

Reconcile Data

3

Draft the Reply

4

Submit & Follow-Up

Interactive Response Strategies

Discrepancies arise from various reasons. Click on a segment in the chart to see tailored "Do's and Don'ts" for your situation.

All Scenarios

© 2025 GST Response Guide. For informational purposes only.

This is not professional tax advice. Always consult with a qualified tax professional for your specific situation.

]]>Fri, 03 Oct 2025 09:30:00 +0500<![CDATA[Interactive Guide to GST Valuation Rules]]>https://www.taass.in/blogs/post/interactive-guide-to-gst-valuation-rules
GST Valuation Rules Guide | Thombre & Associates
Updated 2025 Statutory Compliance

GST Valuation Rules: An Interactive Guide for Related Party Transactions

A clear, practical guide to navigating arm’s length pricing, distinct person transactions, and statutory rule hierarchies under Indian Goods and Services Tax laws.

Thombre & Associates
•
17.09.25 • 09:30 AM
•GST
Section 2

The GST Valuation Rule Hierarchy

When standard transaction value cannot be accepted under Section 15(4), GST rules establish a mandatory sequential valuation process.

00

Start: Related Party Transaction

Applies to supplies between related parties or distinct persons (e.g. cross-state branch transfers) where price is not sole consideration.

01

Rule 28: Primary Valuation Method

Mandatory First Step

Must attempt valuation in the following priority order:

  • Open Market Value (OMV): Price charged to unrelated buyers under normal trade.
  • Like Kind & Quality: Value of identical or similar goods/services.
  • 90% Resale Option: If recipient resells goods as such, value can be 90% of recipient's selling price to end customers.
Full ITC Proviso: If recipient is eligible for 100% Input Tax Credit, the invoice value is automatically deemed as OMV!
02

Rule 30: Cost-Based Value

If Rule 28 Fails

The taxable value shall be 110% of the cost of production/manufacture, or cost of acquisition of goods, or cost of provision of services.

03

Rule 31: Residual Method (Best Judgment)

Final Resort

Determination using reasonable commercial principles consistent with Section 15.
Note: For services, taxpayers have the flexibility to apply Rule 31 directly, skipping Rule 30.

Interactive Tool

Valuation Rule Finder

Select your transaction conditions below to quickly find which rule applies.

Section 3

Practical Scenarios & Key Exceptions

Full ITC Eligibility

If recipient has 100% ITC eligibility, any invoice amount declared is legally deemed as Open Market Value (revenue neutral).

Supply to Employee

Gifts up to ₹50,000 per financial year from employer to employee are exempt. Contractual perquisites are outside GST.

Supply via Agent

Governed by Rule 29: Open Market Value or, at supplier's option, 90% of price charged by agent to unrelated buyers.

Section 4

Frequently Asked Questions

Disclaimer: This guide is for informational purposes only and does not constitute formal legal or tax advice. Consult Thombre & Associates for advisory on specific statutory requirements.

Thombre & Associates

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