• Purchasing of a flat from land owner instead of builder

I am going to get my flat registered which has been purchased from the land owner by booking after completion of about 95% work( Not the share of the builder). Now the builder is asking for GST @ 12%. To whom( Land owner or builder) do I have to pay it, if required to be paid?
I have taken a bank loan under PMAY and fall in MIG-1.
Asked 4 years ago in GST


If the construction was not completed when you bought the property, GST shall apply.

Who will be issuing invoices to you? If invoices are from land owner, make the GST payment to the owner. Make sure you take proper invoices where GST is charged.

According to my understanding, the flat from the land owner was just part of his share and never registered. So it's same as buying from the builder.

Lakshita Bhandari
CA, Mumbai
5660 Answers
817 Consultations

5.0 on 5.0

It appears that you make the entire payment to land owner and not to the builder. At the time of booking/payment project was uncompleted and not issued completion certificate from the authority so you are liable for GST liability. I think builder has no right to ask from you the GST portion. If he still persists ask GST tax invoice bearing his GST No. If you made payment after 25.01.2018 then you are liable for GST@8% and not 12% if his project is registered under PMAY with HUDCO or NHB.

Vivek Kumar Arora
CA, Delhi
4493 Answers
621 Consultations

5.0 on 5.0

You have to pay GST to landowner.

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

Thanks and regards

Abhishek Dugar


Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

GST shall be paid to builder only as it is applicable only on construction of property and not on sale of land. Sale of land is still not covered under GST and falls under Stamp Duty.

Builder shall raise a tax invoice to you for his construction activity and charge the applicable GST (most probably 12%) for the same.


Sunny Thakral
CA, Delhi
224 Answers
8 Consultations

5.0 on 5.0

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