• GST rate under CLSS

Hi All,

i booked a flat under CLSS in Sep 2017 when GST was at 18% and i paid 95% to builder in Nov 2017
later this rate was changed to 12% and my builder is saying they are not aware of any such notification from government and continuing to charge 18%

Please advise if I can avail the GST benefit as registration is yet to start in April 2018 and if there is any supporting document that i can show to builder

Thanks in advance
Asked 3 months ago in GST from Bangalore, Karnataka
As you already booked and paid 95% of the amount to the builder before the date of notification I don't think you are eligible for the concessional rate of benefit. The said notification came into effect from 25.01.2018 itself. Supporting document is notification of the department.
Vivek Kumar Arora
CA, Delhi
866 Answers
16 Consultations

5.0 on 5.0


There is a catch in your query. You said that 95% of the amount was paid by you in Nov-2017. However, the notification of reduction in rate of GST came on 25.01.2018 applicable from the same date.

As such, reduction in GST Rates to amount already paid and billed might not be applicable in the absence of any clear notification by the Govt. in this behalf.

However, there is possibly one solution in your case. Please check that whether the amount paid by you to the builder in Nov 2017 is booked by builder as advance or already billed in your name and GST paid by him. In case he has not yet billed the amount and not paid GST on the same to Govt. till date, he may pass on the reduced rate benefit to you. The date of invoice of the amount paid by you is important in this case.

Discuss with your builder and revert for any further clarifications if you want.

Sunny Thakral
CA, Delhi
224 Answers
4 Consultations

5.0 on 5.0

Since notification came in Jan 18 and applicable from said period ,and you paid the amt before that so i think its not applicable for you.
Swati Agrawal
CA, Indore
359 Answers

5.0 on 5.0


The builder is correct. If the construction is not registered in  PMAY, he will charge GST @ 12%. You need to explain it to the bank.

Please feel free to call/ revert in case you need more clarity

Thanks and regards
Abhishek Dugar
Abhishek Dugar
CA, Mumbai
2942 Answers
125 Consultations

5.0 on 5.0

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