• Builder is asking me to pay GST on development charges.

Dear sir,

I purchased the property after receiving OC from BMC. builder is asking me to pay GST on development charges which on Rs. 5,00,000.00 please advice am i liable to pay GST against property purchased after OC received ?
Asked 5 years ago in GST

Dear Sir,

GST is not required to be paid on the transfer of immovable property if the transfer is made after receiving the completion certificate.

 

However, the development charge is something different from the immovable property. This amount is charged by the builder for the common amenities provided by the builder and no transfer of title is involved in this case. Therefore GST will be leviable to this charge irrespective of whether the completion certificate has been given or not.

 

However, I would suggest you to please check your agreement with the builder to ascertain whether this term of payment of GST or other tax is included or not. That would help you out in a better way.

 

Trust this meets your understanding.

 

Thanks.

Brijendra Tripathi
CA, Lucknow
143 Answers
3 Consultations

5.0 on 5.0

Hi,

 

Hope you are doing well !!

 

If you have purchased the property with all amenities then there is no need to pay GST separately.

 

GST will be payable on sale deed value if purchased before BUC i.e after BUC even GST not attracted.  



Please go through the sales deed for better understanding.

 

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

As per GST for construction work GST is to be paid only if any payment is made before construction was complete but since you are making the payment only after the oc has been received there is no need to pay GST explain him that he is also not required to pay any GST on same and therefore he is not required to collect it from you and ask the broker to settle things with builder as he should have told this to you before hand.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4265 Answers
96 Consultations

5.0 on 5.0

Hi,

 

No, you dont need to pay any GST.

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

Hi

 

No you dont need to pay any GST.

 

 

Hope it helps

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

Hi,

- If the total cost is included in the registration amount then no need to pay GST. 

- Ask GST no. from the builder and check status of return filing on the GST website.

 

Thanks

Vivek Kumar Arora
CA, Delhi
4825 Answers
1030 Consultations

5.0 on 5.0

Dear Sir,

 

You are not liable to pay GST against property purchased after OC received.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

Hi

 

If the property has been purchased after receipt of OC, no GST shall be applicable no matter the consideration has been bifurcated into development charges.

 

However, if these development charges are in relation to any specific alteration or construction provided specifically to you post purchase, GST would be applicable. So, kindly confirm with the builder as to what these charges are meant for.

Lakshita Bhandari
CA, Mumbai
5687 Answers
908 Consultations

5.0 on 5.0

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