I have booked a flat by paying 10%of sale consideration in an ongoing venture including 12%GST applicable and about to conclude sale agt.Balance amount I am planning stage wise from April 19 onwards.So for the balance AMT what will be the GST rate 5%or 12%. Builder wants to incorporate 12%GST for 50%of sale consideration and for balance at 5%rate in the sale agt.is it correct sir.
The GST needs to be charged at the rate which are in force at the time of receiving payment so since the new rates of GST will be applicable from April so I guess he should charge 5% GST on entire amount received from April onwards.
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Thank you
Dear Sir,
Hope you are doing well !!
For the balance amount, GST@5% will be applicable.
Yes, it is correct.
As the new provisions will be applicable form 01.04.2019 therefore rate of 5% should be charged by the builder on all payments post 01.04.2019.
Hi
The builder is incorrect in such approach. 5% rate shall be applicable for all payments made after 1.4.19.
However, if according to your agreement with the builder any installments become due before April 19, then 12% rate shall apply even though installment is paid in April.
Hi
If payment is planned after 1.April .2019 and no invoice is raised by builder for any payment ,then 5 % rate will apply,other wise 12%
As Rates which are effective on- date of invoice or date of payment whichever is earlier ,is consider for payment of GST.
Hope it helps
