GST is not payable on project , Once it gets OC.
GST on apartment
I booked an apartment on Jan 20 by paying 10% of the sale value. The property got OC and my sale deed (agreement) is not yet done. Question 1: My agreement is not yet ready but OC has received. Am i suppose to pay GST as OC is available. Question 2: What if the GST rate changes from 12% to 5%. Am I suppose to pay at the rate of today Or the rate at which my instalments are due. Thanks in advance
Asked 5 years ago in GST
Dear Sir,
No, GST will not be charged by the builder on a ready-to-occupy apartment, because this is immovable property and not goods. Also, its construction was not a service done for you, as you came into the picture only later. (GST would be charged if you paid any amount to the builder before completion / occupancy, treating the construction as a service to you.)
There is no such provision for paying GST on receipt basis in GST era.
Just to give you more clarity: My booking form dated 20th Jan 2019 Apartment Got OC on 25th Jan 2019 My Agreement date -- Yet to be done Does it make any difference (booking was done before OC, but agreement will be done after OC).
Asked 5 years ago
Dear Sir,
Hope you are doing well !!
The GST is applicable, when the complex, building or flat, is sold before its completion and the consideration, whether in full or in part, is received before its completion. So, even if you book a flat, where the builder asks you to pay just one per cent or a very nominal payment and the balance after possession, you will still have to pay the GST on the full amount. Conversely, if the entire sale consideration is paid after the building is completed, there is no GST liability.
Hi
Yes since your booking is done prior to OC ,you will be liable to pay GST.
Hope it helps
Now, you will be liable for GST(booking was done before OC).
Dear Sir,
In that case, you need to pay the GST.
It can be fairly concluded that builder started process for getting OC prior to date of booking. You can have a discussion with him & tell him not to raise GST bill conveying above reasoning.
It is very well possible that he may ask you to pay the gst.
or else ask him to reverse that amount & do a fresh booking, in such case you will be able to avoid GST.
Hi
Yes, GST shall be applicable as the property was booked before receipt of OC.
The rate shall be rate on the date when installment is due.
Agreement date will be considered as final and I guess you don't have to pay any GST since you are paying amount after receiving OC and now even if any GST is asked it will be taken at 5% and not 12%.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
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