I booked an under construction apartment in Bangalore, KA from a reputable builder in Feb 2017 before RERA came in force. This apartment is a land owners share. I made 90% of the payment as required by Mar 2017, balance payment of 10% and other payments e.g amenities, water, generator charges are pending to be paid at time of handover and possession. Last month dated: 8-03-2019, I received a final demand from the developer to pay the balance payment and complete the possession formalities. However, I see now the price have escalated substantially due to CGST and SGST charges added. Now, I see the builder is charging 12% GST on balance amount and 18% GST on amenities and other charges. 1) Please let me know if this is correct as per the current taxation laws as on 1st April 2019? 2) Incase I do the payment now as per the builder, can I apply for a GST refund later? Below are the charges for your reference: Amount GST Percent On Possession 10% payment 662905 79548 12 Maintenance Charges 42588 7666 18 Amenities & Facilities 150000 27000 18 KPTCL & BWSSB Charges 266175 47911.5 18 Generator charges 75000 13500 18 Reticulated Gas 25000 4500 18 Legal 40000 7200 18
1) As you made payment of 90% in March 2017 i.e. before implementation of GST law. At that time, you were charged VAT and service tax.
2) As you are making 10% payment now in GST era therefore rate for construction of building is 12% and for ancillary services it is 18%.
3) As you are ultimate consumer, you are not eligible for refund.
Dear Sir,
Hope you are doing well !!
_ Yes, builder is correct for charging 12% GST on balance amount and 18% GST on amenities and other charges.
-Ultimately GST or any other indirect tax is paid by the customer (you).
Retailer (builder) just only collect it from customer on the behalf of government & deposit it in the government accounts.
So, you can not apply for GST refund as you are ultimate customer.
Hi
1. Yes, the builder is correct in the levy.
2. No. You cannot claim the refund even if excess GST was charged by the builder.
