Dear Amrish,
What do you mean by demand raised in March 2017. Has builder given you the invoice in March 2017. If yes, then you are not liable to pay any GST.
GST applicability on part payment of flat
I have booked a flat with total consideration of About 38 Lakhs, out of which 4 lakh I have paid in advance. The builder had issued a demand of Rs 28 lakhs being the part payment of the above flat in March 2017. I have requested my bank to disburse RS 16 lakh from that demand and they have issued DD dated 30 June 2017 in favour of Builder. Builder Deposited the DD in their bank account and it got clear on 07 th July 2017. The builder had charged 12% GST in their ledger against the said entry rather Service tax 4.5% on the amount stating since the receipt of amount in thier account is after 1 July 2017. I understand that demand raised in March 2017 & DD issued on 30 June 2017 only hence GST should not be applied on that part and service @4.5% should be charged. Please clarify. Regards Amrish Joshi
Asked 7 years ago in GST
Any payment for ready to move in flat after the roll out of the GST is not liable for GST.
Hi Amrish
Since the DD was made on 30th June, the payment was already made. Had it been a cheque instead of DD, there could have been a different scenario.
GST cannot be charged on such payment. Service tax was applicable.
If it is a ready to move in flat, GST should not be applicable to you. Even otherwise, if the demand is raised in Mar, there should not be any GST liability.
Regards,
Nikhil.
A letter of demand for 85% completion was raised by the builder in March 2017. DD issued by Bank on 30 June 2017 DD Deposited by Builder in his bank account on 4 Being 2 and and 3 July as holiday DD got clear in his bank account on 7 july 2017 Please further clarify
Asked 7 years ago
Since this was an under construction flat, GST is liable for any payments made after 01.07.2018.
However, in your case since the draft was issued on the 30th, there should not be any GST liability.
Mere date of clearance cannot be taken to decide whether GST is applicable or not.
The demand was raised in March 2017 and the DD has been issued on 30th June. So there should not be any GST.
Regards,
Nikhil
Can you please share the copy of demand at [deleted]?
GST will not be applicable since payment was released on 30june.Clearance date is irrelevant.
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