1) GST registration is must for under construction projects

2) builder cannot sell if project not registered with GST

3) if construction has been completed and OC issued then no GST would be applicable

4)check whether builder has original documents of title

5) take 30 years title search

6) check whether building plans sanctioned by municipal corporation

1)The Act states that all ongoing as well as under-construction projects that have not received completion certificate have to get registered with the regulatory authorities within three months, i.e, July 31, 2017. Projects with a plot size of minimum 500 sq m or eight apartments will fall under the purview of the Act.

2)Section 3 of the Act says: “No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act.

3)Provided that projects that are ongoing on the date of commencement of this Act and for which the completion certificate has not been issued, the promoter shall make an application to the Authority for registration of the said project within a period of three months from the date of commencement of this Act.”

4)if house owner constructs additional floor it would not attract GST

5) under construction flats do not attract GST Projects if plot size is less than minimum 500 sq m or less than eight apartments

Section 3 of the act shall be the relevant section for you and it reads as follows:

“No promoter shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the Real Estate Regulatory Authority established under this Act.

Provided that projects that are ongoing on the date of commencement of this Act and for which the completion certificate has not been issued, the promoter shall make an application to the Authority for registration of the said project within a period of three months from the date of commencement of this Act.”

GST is not applicable only if the project is complete and the OC has been issued.

Regards

Also before taking the additional floor check that the same forms the part of the sanction map or not or if the same is being constructed additionally then the same has been compounded by the local development authority or not.

Do not purchase the land/ flat without doing the due inquiry about its existence.

Regards

1.should I buy from the realtor as he is not registered with gstin number.Though he insisted all the paperwork is perfect.So loan wont be a problem

It is not advisable.

The Goods and Services Tax (GST) rate of 12 percent will be applicable on under-construction properties.

2.for small apartment (8 flats) is gst is applicable?

The schedule of GST rates for services as approved by the GST Council said that the “construction of a complex, building, civil structure or a part thereof, intended for sale to a buyer, wholly or partly. The value of land is included in the amount charged from the service recipient.” These will be taxed at 12 percent with full input tax credit.

3.after agreement can he ask for gst from me?

He is bound to demand the same even now

4.Normally what is the process or checklist one should follow while buying flats

There are many documents whose list is very big which are required to be verified before buying the property

5.For underconstruction flats is there is any extemption from gst is presentwe

A property that is under construction is governed by the works contract. The GST Council has announced four rates for services - 5, 12, 18 and 28 percent. While 5 percent rate is mostly for transportation services, rates for restaurant services will vary as per tariffs charged and facilities provided, ranging from 12-18 percent; Gambling and cinema services will fall under 28 percent slab, as entertainment tax merged with service tax under GST while works contract is taxable at 12 percent with full input tax credit.

Now please let me know if an house owner building /adding another floor in his house and directly sells the same to me,will that attract Gst.What are the scenarios where under construction house sale does not attract gst?

What this means is that 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.

Dear Client,

Residential construction building invite 12% GST payable by builder. Dosen`t matter if loan approved, in case of default by builder to pay GST, will come under objection, under such clouds purchase not advisable, until he gets all approvals

GST includes work contrast between developer and service provider, purchaser has nothing to do with it and applies at least to 8 flats building.

He can ask and as u r bound by the payment , u may forced to force under circumstances.

Clear title , approval from municipality if required.