Landowner-Promoter shall be eligible to utilise the ITC charged to him

CBIC has notified that the land Owner Promoters can avail GST paid to Developers on the Sale of Land. The GST Council, in its last meeting held on 28th May, decided to make appropriate changes in the relevant notification to make it clear that landowner promoters could utilize the credit of GST charged to them by developer promoters in respect of such apartments that are subsequently sold by the land promotor and on which GST is paid.

The CBIC vide Notification No. 02/2021- Central Tax (Rate) dated June 02, 2021 to amend Notification No. 11/2017- Central Tax (Rate) dated June 02, 2021 (“Services Rate Notification”) to make the following changes:

• Inserted Explanation (iii) in conditions column of serial number 3 (i.e., Heading 9954 (Construction services)) of the Services Rate Notification against items (i), (ia), (ib), (ic) and (id), namely:

“(iii) the landowner-promoter shall be eligible to utilize the credit of tax charged to him by the developer-promoter for payment of tax on apartments supplied by the landowner-promoter in such project”

This notification shall come into force with effect from June 2, 2021.

Source- https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-02-2021-2020-cgst-rate.pdf