I have bought under construction property from builder and it's registration is also done. Long before GST started. I have already paid all taxes on property at the time of the registration. But now my builder is demanding the GST on property. Do I need to pay the GST ? Because I have already paid all taxes before GST came into picture. If I am paying GST then shouldn't my previous tax amount should be returned to by builder. Why I need to pay tax more than once for same property. Any advice on this will be very helpful. Thanks in advance. And if I need to pay the GST then what should I make sure from builder (about receipts and documents).
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I have bought under construction property from builder and it's registration is also done. But builder didn't included the possession date in registration(is that okay). And how can I get the possession date from builder so that I can have something legal if possession gets delayed.
If you ave paid the full cosndieration money beofre the GST came into force you are not liable for making further payment.
So the demand of the builder is without any legal basis and you can very well refuse to pay it.
if the builder ask for GST payment through written communication challenge this beofre the consumer forum seeking damages and compensation for this mental harassment.
since property is under construction GST is leviable even if registration has been done in your name
2)under-construction properties will be taxed at 18% which includes 9% SGST plus 9% CGST
3) builder would issue you receipt about payment made towards GST
Thanks Ajay For your reply. One follow up on that is should I be paying GST on complete registration cost or only the remaining on. What about the service tax I payed before hand on my complete property cost ?
builder should have mentioned possession date in your regd sale deed
2) ask builder to give in writing as to when he would offer possession .
3) if there is delay then you can claim compensation for delay in delivery of possession
The GST is payable at applicable rate for the flats still under construction.
Yo hav registered the sale agreement only and not the sale deed, hence you have not paid the entire sale consideration amount.
Therefore the GST can be levied for the under construction property.
You can demand receipt from builder for payment of the said tax.
I have bought under construction property from builder and it's registration is also done. But builder didn't included the possession date in registration(is that okay). And how can I get the possession date from builder so that I can have something legal if possession gets delayed.
The under construction property canot be handed over possession without completion of construction.
If the construction is completed then you may demand the possession letter from the builder while handing over possession or the tentative date.
You may demand builder to give in writing as to which date he would offer possession .
One follow up on that is should I be paying GST on complete registration cost or only the remaining on. What about the service tax I payed before hand on my complete property cost ?
under-construction properties will be taxed at 18% which includes 9% SGST plus 9% CGST, i.e., eve if the registration has been done on your name, however it may be restricted to the balance of sale consideration amount that may be required to be paid or you may clarify the same with the builder.
Since the property is under construction GST at the rate of 18% will be applicable which includes 9% SGST and 9% CGST.
Please ask your builder as to when he will give you the possession (in writing) and if he fails to give the possession within the specified period then you are at a liberty to file a case and claim compensation in the consumer forum.
Regards