Will GST tax will apply before purchasing 1st july and not done property registration I have purchase flat and given 20% advance money to builder and made sales & construction agreement on 20th June 2017. Rest of 80% amount i applied for loan and get sanction and released money to builder accordingly. Now builder saying; you have to pay extra difference GST amount before registration. Its mean builder taken out previous applied tax and added GST tax (12%) and extra amount asking to pay. Here my question is if agreement/deal has made before GST and amount has paid 20% as advance how can they ask extra money. I don't know what I have to do here? Please advice me. Thanks in advance.
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Payments made before June-end for under-construction properties will be charged 1% VAT + Service tax after abatement (3.75% or 4.5%), while payments post-July 1 to attract 12% under GST
effective GST rate will remain 12 per cent on under- construction properties.
2) for 80 per cent payments made after 1st July 2017 wil attract 12 per cent GST
For under construction properties the payments which were made before 1st July THE vat and service tax will be charged at 3.75 or 4.5 percent after abatment, as the case may be, whereas after 1st July the GST will be charged at 12%.
The GST is applicable with effect from first July.
Since the registration of sale deed shall be after the effective date you are bound by the law on GST.
