Hi, I have booked an apartment 4 years back. Builder's schedule was like this 30% payment : Initial payment (2016 VAT and Service charge collected) 65% payment : Once flooring done (2018 - 12% GST calculated) I have 5% payment pending. Builder keeps on differing possession date. My ask is the based on the information available GST for under construction property is 5%, then is this applicable only for pending payment (5%) or on overall? Builder says it's only for the rest of the payment. Property value is 1.4cr Regards, Lovin.V
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GST is applicable on sale of under construction property or ready to move-in flats where completion certificate has not been issued at the time of sale. Card rate for such flats is 18 per cent, but the effective rate is 12 per cent after abatement of 33 per cent (cost of land). it is on the whole value of the flat.
regards
It is applicable only for pending payment
builder is absolutely correct
the builder shall collect GST from the buyer and pay it to Government.
To note: On construction service, GST is only payable if the agreement to buy the property is entered before it's Completion Certificate is obtained and some amount of consideration is paid. If the same has been entered after the C.C. has been obtained, GST shall not be charged. [Reference: Schedule II(5) & III(5) of CGST Act, 2017]
From the date of effective revised gst it will be applicable. If that come under your final payment then it is applicable to you.
Applicable on the last pending payment to the tune of 5% and not on the overall [payment.
Builder is correct
Dear Sir
you will get answer ind detail in thefollowing link
http://www.cbic.gov.in/resources//htdocs-cbec/gst/GST_on_comercial_properties.pdf;jsessionid=8A8E029675D98990B25801CD1EF7DC9B
GST will be payable at the rate of 5% only on the outstanding amount the previous payment which has been made @ 12% has nothing to do with the amount of GST now payable and it cannot be set off as the GST payment is payable only at the time of issuing device as you do not have the invoice for remaining amount of 5% so you have to pay 5% of GST at the time of your outstanding payment of 5%
Thank you all.. How can I certain that builder has paid the 12% GST on my previous payment. I have invoice which doesn't have any GST details..
You can get the information from the govt gst website
GST is applicable only on the remaining amount it is not applicable on the already paid amount.
See you can ask details of the GST payment from builder that he paid to the government.
Ask builder to give receipt that GST had been paid by him
The 5% GST will have to be paid on the remaining payment that has to be made.
If there is a delay in possession then you can file a complaint before RERA in order to get the payment against the delayed possession.
Regards
This is not your responsibility. Let the GST department do the needful task of assessment.
the 5% rate reduction has been made applicable from 1.4.19
however the notification for the same is awaited
the new reduced rates will be applicable for all payments falling due on and after 1.4.19
you are also entitled to claim input tax credit for the 12% GST paid by you prior to 1.4.19
you can ask builder to provide you GSTR-1 returns which will reflect the GST he has collected from flat buyers on sale of flats
Since the latest amendment reducing the GST to 5% had been effected recently, it is applicable for the events from that date only hence you may have to 5% GST only for the remaining payment and not retrospectively.
If you have any doubts about the GST payment made by the builder to the government you can always demand the details of payment made by the builder, you can even issue a legal notice demanding the details.