Yes you are liable.
Hi, I have bought flat from land lord share . The builder is marketing the flats . I have paid the advance and now the builder asking me to pay the 12% GST for my flat before getting registered . Should I pay ?
Yes you are liable.
Okay. The cost of the flat is is 55 Lakhs . And 60% completed by 1st July . So how much GST amt to be paid ?
I mean 60% of construction completed by 1st July.
Only on the payment made in the GST Era i.e After 1ST July
Before the implementation of GST, Service Tax was applicable on construction service. So, for payments made before 1st July, ST was applicable.
From 1st July onward, GST @12% shall be applicable.
You will be liable to pay GST @ 12% for the billing / payments done on or after 1st July 2017, when the GST is introduced. Earlier, you would have paid service tax, if levied on you.
You may claim input credit if you are also registered under GST.
Thanks you all for your inputs . Couple of questions: 1. I gave him the cheques ( for advance payment ) dated 1 July . Not sure if we can pay just ST on these since they are handed over before 1July. 2. When I insisted them on ITC , they told me that Its peanuts and govt is making false claims about this and of no use . How should I proceed now ?
The payments made after 1 July 2017 will be liable for GST.
Please feel free to call revert in case you need more clarity.
Thanks and regards
CA CS B.Com
Both the Service tax upto 30th July 2017 and GST from 1st July 2017 are payable at the earliest point of time, the time of billing or payment of advance.
If the builder is charging GST, you can insist upon quoting your GST in the bill, if you are also registered under GST and you are entitled to claim input credit. Whether the Government is making false claim or not is not his concern. He has to mention your GST No. if you are having it and you intend to take the benefit of ITC.
1. In relation to the 60% work completed, the invoices or payments before 1st July shall not attract GST. If you have paid cheque dated 1st July in relation to remaining 40% work, GST shall be applicable irrespective of the fact that the cheque was handed over before.
2. If you are registered under GST, you can surely claim the ITC on such GST paid to the builder. There's no point of false claims by the government. Quote your GSTN number to the builder so that he can give your details while filing his GST returns and ITC shall be available to you.
1. Handing over the cheques is of no value unless you have a contract or a receipt from the builder stating that the payment was made before GST kicked in.
2. It is very difficult for you to find out the ITC benefits of the builder since you cannot access his books of accounts.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP