• GST charges on flat

I had purchased one flat at 2016, and took a loan from bank on part disbursement till Dec 2017. On july 2017 OC has been received for a building, but our payment is still going on monthly basis. Now builder is asking for GST charges on the pending amount from July 2017 to Dec 2017. Is GST applicable for such situation. Can you provide any document link for GST waive off
Asked 8 years ago in Property Law
Religion: Hindu

First answer received in 10 minutes.

Lawyers are available now to answer your questions.

8 Answers

GST would be attracted on any payment which was outstanding as on 01.07.17 and was required to be cleared by you. Had you made the payment of the entire outstanding balance on or before 01.07.17, only service tax @4.5 percent had been applicable as against 18 percent GST.

Vibhanshu Srivastava
Advocate, Lucknow
9763 Answers
323 Consultations

Hello,

For any charge that is pending to be paid after 01.07.2017 you will be required to pay GST @ 18% which includes 9% SGST and 9% CGST.

If you had cleared the outstanding balance before the said date then you would have paid service tax @ 4.5% but as of now you will be required to pay the GST and there is no way in which you may overcome the same.

Regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

Sorry, but there happens to be no way by means of which you can escape the GST.

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

GST wouldnot be applicable in respect of all payments made by you to builder after 1st July 2017

2) since you are making payments between July abd December to builder after issue of OC GST would not be applicable

Ajay Sethi
Advocate, Mumbai
99783 Answers
8145 Consultations

GST is not applicable after issue of OC

Ajay Sethi
Advocate, Mumbai
99783 Answers
8145 Consultations

18% GST applicable from July'2017. I do not think GST can be waived off until and unless builder reduce the price of the flat.

Niranjan
Advocate, Bangalore
844 Answers
9 Consultations

from July 1, GST would be applicable on under construction properties at the rate of 12 percent but not on completed, ready-to-move-in apartments. Real estate experts say that stamp duty and property taxes may continue to be levied on immovable properties.

T Kalaiselvan
Advocate, Vellore
89985 Answers
2492 Consultations

is there any way to avoid

Since you say that you have been given OC, it means that the property was completed with the construction.

Since the GST is not applicable for the completed house you may gently refuse to pay the same to the builder.

T Kalaiselvan
Advocate, Vellore
89985 Answers
2492 Consultations

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer