Manishga wrote:

we started building 2 houses on a land (subdivision project) with a plan to sell after completion. we claimed the gst calculation on construction and goods from the beginning. once the construction is completed, in case we changed our mind and rent the properties, I understand we need to pay the gst back in 5 years depends on when we sell them. do we need to pay any penalty to ATO as well? TIA

If you decide to rent instead of sell, you’ll usually need to repay the GST credits you claimed since residential rent is input-taxed. There’s no penalty if you adjust it correctly through your BAS, but make sure to do it on time and keep clear records to avoid any interest or issues with the ATO.