GST refund after property purchase

Hi Anjana

Since you have booked the property under construction, GST will be chargeable even if you do the registration post completion.

For stamp duty, pls check with local real estate consultant as it's state specific.

No, if under construction property is purchased then GST is leviable and it can not be claimed back. However if you purchase the property after being completed then there is no GST. Timing of registration is immaterial in this case. 

If you have made any advance payment it doesn't matter if are going to register after completion certificate because ideally registration can be done and stamp duty needs to be paid only after the work is complete before that you only enter into a construction agreement.

So in short you can't claim refund of GST paid if you have paid any amount before in advance.

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Thank you.

No sir if you are paying before receiving the completion certificate then you need to pay gst on entire amount and you can't claim refund even if you register the flat after completion certificate.

I don't think you will pay less stamp duty if you register it now because at the time of completion they will transfer possession to you and at that time they will register the flat in your name and ask you to pay stamp duty.

I don't know how they are marketing the product but this is how normal tax works even now they would say we would refund you GST but at that time they can change their opinion and say we need to pay GST our CA is consulting us this as since it's law you can't do anything so think before you invest.

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GST will not be refunded in any case because you paid the installments during the construction period. 

Hi Anjana,

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. 

In your case,GST refund is not available as you have paid the amount before its completion.

Further, the stamp duty varies from one state to another state and can be estimated by using a stamp duty calculator to determine the stamp duty and registration charges.

You can take a help of local real estate consultant/broker for the same.

Hello,

Since you have booked an under-construction property, GST is applicable to it. If you would have bought an ready to move in property and made all the payments after the property has received the completion certificate, GST wouldn't have been applicable to it.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

Registering the property after completion certificate wouldn't affect the chargeability of GST. No GST would be refunded in this case.

As far as GST is concerned, you will not get any refund even if you register the property after completion since it was booked when under construction and payments were made. GST shall be chargeable @ 5%.

Hello Ma'am,

Since you have booked the under construction property and made the payment during construction period, GST refund is not possible.

GST will be chargeable@5% without ITC.