Hi, I purchased a commercial property in Hyderabad from land owner in the year Oct-2018 and got it registered before getting the OC and last March we have received the OC. Land owner is telling me to pay the GST to the builder now. Should I pay the GST to the Builder or to the land-owner? My sale deed mentions that any taxes has to be paid by the buyer, but did not say to who. If I don't pay builder is telling he won't give possession of the unit. If I delay the GST payment to the builder will GST penalties will be applicable and will those penalties be imposed on the buyer at a later stage? What is the penalty rates? By the way the registration was done only by the land-owner and the builder was NOT involved in the registration and the reason I hear is that land-owner has the full authority to sell his share of units without builder's knowledge, but when Builder sells land-owner has to sign the registration since the entire land belongs to the land-owner. Please clarify. Regards Ravi
Dear Sir,
As you have purchased property from owner, so you will have to pay gst to owner because when owner had purchased it from builder , he must have paid gst to builder , so paying again to builder means builder collected gst twice which is not correct.
On contrary, if you have purchased property directly from builder, then you will pay gst to builder only.
And penalty will be imposed on one who has delayed payments.
Thanks & Regards
Shiv Kumar Agarwal
Owner and builder have a JDA and I purchased the property from Owner. Owner is telling Builder to get the GST from the buyers who have brought from him (owner). So if I delay the GST payment to Builder will there be penalties for Builder which again will get imposed on me?
In GST we have a concept of Time of supply and GST is required to be deposited with the GOVT, if you are not paying the Builder on time, then whatever he has incurred, will be collected from you like Interest, Penalty. Interest will be at 18% p.a or 24% p.a, and penalty minimum Rs.10000/- and can exceed upto the tax amount.
Hi
The GST should be paid to the person who is selling the flat to you, that means you have to pay tax to the landowner who is selling the flat to you. If you are purchasing ready to move flat then no GST is applicable. ... In case of JDA, both builder and landowner needs to register themselves under GST and pay GST.
Hi
Interest will be applicable at the rate of 18% if the payment is not done within the due date. A rate of 24% interest will be applicable in the case when a taxpayer claims excess of input tax credit or makes a reduction in the output tax liability
After the amendment under GST now the share of owner of GST will be paid by builder only in JDA so yes you need to pay GST to builder and you can take a receipt from him for such GST payment.
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Thank you
Dear Sir,
Hope you are doing well !!
You are required to pay GST to builder as per recent amendments.
Dear Sir,
You should pay gst to the person whom the owner is insisting you to.
Again, penalty will be imposed on the person on whose part there has been delay in depositing gst.
Thanks & Regards
Shiv Kumar Agarwal
Yes, there will be penalties.