Payment made after july 17 will be liable for GST. Any payment made before July 17 will not be again liable for GST as service tax had already been paid on it.
GST on flat
Buider asked 12% GST on total value where agreement-ed before july and advance amount paid
Asked 6 years ago in GST
I did a notary agreement with builder on feb2017 and paid some advance amount, after that on 20July2017 the agreement became registered and bank dispatch 80 % of the total amount to the builder .Now when I go for the final payment to take the delivery of the flat, the builder is asking for 12 % GST on the total amount with pre decided sqft. Rate. Is there any way to get relief from that.
Asked 6 years ago
Is it under construction flat or ready to move flat after receiving completion certificate from the certificate. If you have purchased ready to move in flat for which completion certificate was already issued by the authority then there is no applicablilty of GST.
If you had paid for under construction house then you need to pay GST on 80%.
You will need to pay GST on 80% of the total amount (paid after July)
Regards,
Nikhil.
Hi,
Builder cannot ask you for GST on the advance amount you paid before 1 July 2017.
On the remaining amount, GST shall be chargeable.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hi
If the advance for the flat is paid before GST and the delivery of the same is given in the GST regime, the GST is to be paid and the builder has to reduce the Tax paid by you during the agreement.
For example, While paying an advance ( say10lakhs, on which you have paid a tax of 1lakh), now while you make the final payment you have to pay tax on the total flat value (say 1crore and GST is 12lakhs), now you have to pay tax by reducing the value of 1lakh which you have paid in advance and pay the remaining 11lakhs.
Thank you
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