I purchased an under construction flat in July 2013 and I was paying the installments as per the stage wise construction as per the agreement of construction. due to a court case the installments were stopped in Nov 2014, by that time we paid 67% of the total amount. our installments consist of proportionate VAT and service tax too. court case got resolved recently, and court directed builder to provide us possession by taking balance amount. the construction of the flat and whole project completed in Dec 2016 and project also received occupancy certificate in July 2017. Now builder is asking GST on balance amount , our concern is when the construction is already completed and occupancy certificate is granted, will the GST is applicable on balance amount. actually service was provided for construction of the apartment before dec 2016 but because of the stay order of the court we were not paying the installments which includes ST and VAT. can builder ask the GST for the service done before implementation of GST itself? in case GST is not applicable, can builder ask for service tax and VAT for the balance amount now?
Hi,
Since you have received occupancy certificate in July, GST will be applicable.
Had you received the occupancy certificate before July, GST would not have been applicable.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
GST has to be paid on the balance amount as receipt of occupancy certificate becomes relevant here. Since you have received occupancy certificate after GST implementationtation, GST would be applicable on the balance to be paid.
GST is not applicable for ready to move in apartments, my apartment is also ready now and I am going to pay the amount now, I am paying a lump sum amount as balance payment, how govt will come to know that I have paid GST to builder, he can also show it as sell of completed apartment. can I ask benefits to the builder because of 100% input tax credit to builder for reducing the price of the apartment , how much that can be?
GST is not applicable for ready to move in apartments, my apartment is also ready now and I am going to pay the amount now, I am paying a lump sum amount as balance payment, how govt will come to know that I have paid GST to builder, he can also show it as sell of completed apartment. can I ask benefits to the builder because of 100% input tax credit to builder for reducing the price of the apartment , how much that can be?
GST is applicable on such properties where occupancy/completion certificate was given after implementation of GST. Hence, in your case, GST is applicable.
one more clarification I required, our flat value is as per agreement of sale of undivided share of land and agreement of construction together comes as X+Y. sale deed will also contain only this value (X+Y). The documents submitted for bank loan by builder to bank also mentioned X+Y as total flat cost. On top of this cost he is collecting some other charges which he is terming as statutory deposits and other charges say Z, and he is collecting 12% GST on X+Y+Z. Statutory deposits are for BWSSB, BESCOM etc. My doubt is, whether he should compute GST on X+Y or on X+Y+Z. Please clarify.
Hello,
No, GST is not applicable on Statutory Deposits since that is not a form of income but a mere deposit.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
