I had purchased a flat in ulwe mumbai for around 60 lakhs. Agreement Value 49 lakhs. Did my registration on Sept 2016. The service tax plus VAT the builder asked to pay me was 2.33 lakhs in cash. Which I had paid him. I didn't ask for any receipt. So he adjusted that money into some other of his expenses. Now after 1 year he is handing me over the possession but hes saying he hasnt paid my service tax and VAT yet is asking me to pay GST(only applicable after july 1st 2017) which is 12%. He's saying I had not paid complete Service Tax n VAT at that time. So Instead of 2.33 lakhs he’s asking me to pay around 4.88 lakhs of GST. Since I didn't ask for service tax and VAT receipt I don't have any proofs to show up. Please help me with the technicalities of understanding this. Is this a legitimate claim by the builder or am I just being fooled around by the builder? Thanks in advance for any help.
It appears that you had purchased a ready to move flat in September 16 and paid all the consideration before July 17.
Why the possession has been delayed?
If the above conditions are satisfied then there is no need to pay GST at all.
Regarding service tax and VAT ask him the copy of invoice.
GST is applicable only when after some construction activity has been completed or some amount is due from your side.
1) It wasn't a ready to move in flat. It was under construction in Sept 2016 when I purchased. I'm getting the possession now in April 2017. Took time to get the OC for the building. 2) He didn't pay VAT n Service Tax at that time. He's saying he missed to pay it. He's asking me to pay for GST now to take possession. 3) Hes asking me to pay 12% of 49 lakhs agreement value i.e 5.88 lakhs now. 4) Bank had paid 44 lakhs loan amount to him in 2016 October. Only 4 lakhs pending to be paid now by bank. Please contact me on 9175594059 for any questions.
As no consideration is payable on or after 01.07.2017 therefore no GST is applicable
Hi
Since the complete payment was not done till GST implementation and the property was under construction, GST becomes applicable on the property.
Since you don't have proofs of service tax and GST payments, there's nothing you could do now but pay GST.
Hi Lakshita, Yeah I don't have any proof. I also think he has also paid Service Tax and VAT by himself but trying to pocket more money from me by taking GST since I don't have any proof of payment. Is there nay way I can find whether he has already paid my TAx and still asking me more. Also I thought GST is only applicable for amounts/payments paid after July 2017. I have done 90% payment before July 2017. Only 4 lakhs remaining now to be paid. So is GST even applicable on entire amount??
Only amount payable on or after july 17 is liable for GST and not on complete amount
Hi,
Based on the above, I doubt you have any option other than to make the GST payment on any amount that you pay to the builder post 01st July 2017.
Regards,
Nikhil.
No.
GST shall be applicable only on the amount paid after GST implementation. So, GST has to be paid on 4 lacs only.
As far as service tax and GST is concerned, it was applicable on the payments made before GST implementation. Work with the builder as to how he would consider the service tax and VAT payments.
The builder is not correct in charging 12% on entire amount of 49 lacs.
Gst to be paid on amount outstanding after gst implementation. So u need to pay on 4 lacs only
Hi,
You are not liable to pay any GST, if you have not paid any installment post 1 July 2017.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
GST will be applicable on the amount of 4 lacs which you will be paying now.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com