• I am being asked to pay GST for purchasing land owner share flat

I decided to purchase a land owner flat in January-2018 only after the person(selling the land owner share flat) stated that there will be no GST since it is a land owner share flat.The registration for the flat was completed in February-2018.Now the flat will be in "ready to occupy" status in around 1 month from today(1-May-18).
A week ago,the land owner person who sold me the flat called me and stated "Government has introduced a new norm recently that GST is applicable even on land owner share flats.Hence you have to pay the GST for the flat without fail.If you do not pay the GST,I will not give you the Flat for possession".

1)Please suggest me,Is this GST applicable to me or to the land owner?

2)If I need to pay,do I need to pay GST to the land owner GST number or to the Builder(the one who constructed under the JDA with the land owner) GST number?
Asked 4 months ago in GST from Hyderabad, Telangana
Good Morning,
If you are purchasing it after the seller(even though it's a landowner flat) has got the certificate of completion then GST is not liable to be paid, if you have paid any advance before the seller occupancy certificate then the GST has to be paid.
1) In your case, as the agreement is completed in the month of February and the completion certificate is yet to be received, the GST is applicable and you have to pay the GST.
2) The GST should be paid to the person who is selling the flat to you, that means you have to pay tax to the landowner who is selling the flat to you.

Thank you
Lakshmi Channakesava Vankadari
CA, Dharmavaram
3 Answers

Not rated

If you are purchasing ready to move flat then no GST is applicable. 

If in any case you are liable to GST then you need to pay it to the person who is selling flat to you. Ask for the tax invoice with GST no.of the supplier.

In your case, if the landowner sold flat to third party during construction by the builder then landowner will be liable to pay GST.

In case of JDA, both builder and landowner needs to register themselves under GST and pay GST.

Ready to move flats are those where completion certificate is issued by the competent authority or first occuptation of flat whichever is earlier.

Vivek Kumar Arora
CA, Delhi
1262 Answers
24 Consultations

5.0 on 5.0

Hi,

In case of a ready to move flat, no GST is applicable. However in your case you will need to pay GST.

GST has to be paid to the seller of the flat. 

Regards,
Nikhil.
Nikhil Khanna
CA, Mumbai
1039 Answers
7 Consultations

5.0 on 5.0

GST is applicable on under construction property thus if you had purchased share after completion then no GST at all, and if you purchase before completion then GST is applicable on flat value after reducing  land value.
Lalit Bansal
CA, Delhi
547 Answers
37 Consultations

5.0 on 5.0

1. GST is payable on under construction property,Property is said to be under constructed if certificate of completion is not received.you have to pay GST if you are buying under construction property,otherwise not.
2. GST is to be paid to seller.In your case it is land owner.
Swati Agrawal
CA, Indore
550 Answers

5.0 on 5.0

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