Dear Client,

If you are buying an under-construction property, it is considered as availing a service from the builder; hence, you are supposed to pay GST on it. According to the GST law, construction of a building, complex or a part of it, intended for sale to a buyer, attracts GST on the sale price.

The property that you have bought has been under-construction since 2015 and will get completed in 2018, then the amount paid or invoice raised before 1 July 2017 should have attracted a service tax at the rate of 4.5%. But any payment made towards purchase of the house or property after 1 July 2017 will attract GST at the rate of 12%.

The balance payments are liable for 12 % Gst.

As I understand your situation here it is that you have paid a lump sum amount of VAT in 2015.

Later the flat is under construction after June 2017 your builder is liable.for 12% GST which he will most probably collect from you people the owners of flats.

According to the Gst rules the builder will be in position to claim input tax credit on material and services used and should pass the benifit to buyers.

Yes

you are liable to pay GST on balance payments made by you after July 2017

Under S.142(11)(a) of the CGST Act, notwithstanding anything contained in S.12, no tax shall be payable on the goods under this act to the extent tax was leviable on the said goods under the Value Added Tax.

Also, S.142(11)(c) states where tax was paid on any supply both under VAT and under finance act, tax shall be leviable under this act and the taxable person shall be entitled to the credit.

Yes you will have to pay GST on the remaining amount that is to be paid by you after June 2017.

Regards

1) If it was partial payment, then on the rest whatever payment that you make after GST rolls out, your builder may charge Goods and Service tax on that portion, and you would be liable.

In a scenario where you have paid Service tax and VAT not on actual payments but on the agreed upon value, of which part payment has been done and another part will be done in future, then again you would not be liable. Because though you have made a part payment you have made Service tax and VAT on the full value of the agreement.

there cannot be double taxation in any event. you have already made VAT payment over the entire value of the agreement. hence you are not liable to pay VAT. GST shall be applicable to cases from June 2017. hence flats booked from June 2017 will be amenable to GST.

There is a difference in the rates of vat and GST. You need to pay the differential amount of GST.

The situation has changed under GST. Under GST, full input credit is available for offsetting the headline rate of 12 per cent. As a result, the input taxes embedded in the flat will not (and should not) form a part of the cost of the flat.

The Goods and Services Tax (GST) rate of 12 percent will be applicable on under-construction properties. This rate with input tax credit seeks to remove the inefficiencies of dual taxation in the form of value added taxation (VAT), service tax and puts an end to multiple taxes.

lthough it is the responsibility of the developer to deposit the VAT and service tax with the government, they often recover the cost from buyers. It ultimately depends on what the agreement between builder and the buyer provides.

After the implementation of the new indirect tax regime, there will be no separate service tax or VAT levied on real estate transactions. While these taxes were anyway not applicable on ready-to-move-in apartments or resale flats, GST will be charged at one fixed rate, instead of both service and VAT on under-construction properties.

Whether you have paid entire vat on the flat value applicable as per the provisions of law at that time. You will not be charged doubled in form of vat and get. If not then get will be applicable on remaining amount as per present applicable provisions.