Thane Developer — Restoring GST Accounts and Securing Construction Finance Disbursement
A 120-unit residential project mid-construction, a CA who resigned without notice, eighteen months of unreconciled accounts, and a lender who needed clean financials in six weeks. Real estate accounting is unforgiving when it falls behind.
What the engagement demanded.
A Thane-based developer was midway through a 120-unit residential project when their chartered accountant resigned abruptly, leaving eighteen months of project accounts in an incomplete state. GST had been collected from buyers on instalment receipts but not remitted correctly; a portion of ITC had been claimed on commercial goods ineligible for a residential project; and the books did not reconcile with the project cost tracker. A new lender coming in for a construction finance top-up asked for clean, auditable accounts before disbursing, giving the developer a six-week window to sort out eighteen months of incomplete work and present financials in the format the lender required.
How we executed the engagement.
Source Document Reconstruction
Pulled all buyer agreements, instalment schedules, GST challans, purchase invoices, and contractor bills to rebuild 18 months of project accounts from primary source documents, not estimates.
GST Output Tax Restatement
Reconciled GST collected from buyers on instalments against output tax remitted to the department, identified the shortfall, and restated the correct output tax liability for each period.
ITC Reversal
Identified input tax credit claimed on commercial goods ineligible for a residential project under Section 17(5), computed the excess ITC, and prepared the reversal entries.
Proactive GST Reconciliation
Filed the GST reconciliation with the department proactively before any notice was issued, enabling regularisation without the penalties that would have applied had the department discovered the gap independently.
Lender Financial Package
Completed the project cost ledger, prepared a construction-stage balance sheet in the format required by the lender, and delivered a clean financial package within the six-week window for disbursement approval.
The capabilities we brought to bear.
Project Account Reconstruction
18-month rebuild from primary source documents — agreements, challans, invoices, and contractor bills — producing accounts that could withstand audit and lender scrutiny.
GST Regularisation
Output tax restatement, ineligible ITC reversal, and proactive reconciliation filing with the department before any notice was triggered.
Construction-Stage Reporting
Balance sheet prepared in the format required by lenders for construction finance disbursement approvals, including project-stage accounting specific to real estate development.
CA Transition Documentation
Complete working papers and documentation packaged for the incoming CA — ensuring no knowledge loss at the transition and continuity of accurate records from that point forward.
The results we delivered.
Real estate accounting is unforgiving when it falls behind because every month adds more transactions to reconstruct. Coming in proactively before a notice is issued always produces a better outcome than cleaning up under pressure from the department.
