• GST penalty

We are buying a Flat in thane, which we had booked in April'17. But the agreements have not been registered due to delays from the builder like,changes in market rate and RERA (which required them to get registered and change the agreement format) for which we had to pay almost nearly Rs.50000 extra to govt. Now the builder is still delaying the registration by saying that there are some technical issues from the govt and they can not do anything about it. He also says that we need to get the loan disbursement and other payments done before 30th June 2017 otherwise we have to bear the GST @ 12%. Please advice on what we shall do as the whole delay is from the builder (who is blaming the government for this). How can we complete the payments, if the registration is not done on time?
1. Do we have to pay GST if the registration is not done by this month. If yes, then how much? (Agreement value - 74 lacs,Loan Amt - 45 lacs)
2. Why should we pay any extra money for the delays done by builder/govt? What should we do here?
Asked 7 years ago in Property Law
Religion: Hindu

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4 Answers

1) GST is applicable from 1st July 2017

2)The Goods and Services Tax (GST) rate of 12 percent will be applicable on under-construction properties. but not on completed, ready-to-move-in apartments.

3) at present n the case of under-construction property transactions, buyers have to pay value-added tax (VAT) and service tax.etc which amounts to a tax outgo of about 11 per cent,

4)The existing tax liabilities of flat purchasers remain unaffected after the introduction of the Goods and Services Tax regime.

5) As GST proposes to roll multiple taxes into one, the cost of construction will come down.and should reduce price of flats

6) you should register your agreement with the builder as soon as possible

Ajay Sethi
Advocate, Mumbai
96763 Answers
7804 Consultations

how can carpet area of flat change in span of a month or so ?

2) if you have paid extra stamp duty ask builder to assist you in obtaining rfund from govt for excess stamp duty paid by you

3)The Real Estate Act has made it mandatory for developers to disclose the carpet area of the units that they sell

4) Carpet area, or the net usable area, is the space where one can spread a carpet.

5)Now the balcony’s area will not be included, even if it is an exclusive balcony for the flat.

Ajay Sethi
Advocate, Mumbai
96763 Answers
7804 Consultations

1. Do we have to pay GST if the registration is not done by this month. If yes, then how much? (Agreement value - 74 lacs,Loan Amt - 45 lacs)

The GST to be implemented from 01 July is yet to be finalised on several counts, hence it cannot be predicted properly at this point of time, you can delay the payment or disbursement to the builder little more and wait for the GST implementation.

2. Why should we pay any extra money for the delays done by builder/govt? What should we do here?

Dont pay any extra amount, and you can ask the builder to bear the extra expenses as it as he who is responsible for the debacle.

You can drag him to consumer forum and make him to clarify the reasons for his inordinate delay.

T Kalaiselvan
Advocate, Vellore
86958 Answers
2334 Consultations

Shouldn't the builder/govt payback the extra stamp duty to us?? How can we claim this?

You can claim the refund of extra paid stamp duty for the unused stamp paper within six months.

T Kalaiselvan
Advocate, Vellore
86958 Answers
2334 Consultations

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