• GST on owner share flat

Hi, I have purchased a flat from land owner..when he sells he said no GST for owner share flats...our registration has completed on Feb 26..handovering time now he is saying us to pay GST ...so who need to pay GST either land owner r me..he sold the flat by saying no GST as benefit and tuk more amount from us...the total flat cost is 44 lacs(1050sqft flat) including eminities...pls clarify me.
Asked 4 years ago in Property Law
Religion: Hindu

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12 Answers

The GST is charged at the prevailing rates over and above the price of the property.

This is implied to be paid by the customer but may be checked before if the price is inclusive of GST?

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

You have to pay GST at 12 per cent on purchase of under construction flat

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0

The buyer has received the services has to pay a gst at the rate of 18 percent on 2/3 value of flat or it can be deduced as 12percent on total value.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. That's such a grey area in law

2. It's the builder who provides construction services and therefore liable to collect gst from flat buyers

3. The owner submits his land for redevelopment by the builder and in return gets his share in free sale flats plus some consideration

4. After these flats are allotted to the owner by the builder, the owner of the land becomes the owner of the flats so allotted

5. The owner is not providing any service as such when he goes to sell his share of flats to buyers in open market

6. The general consensus is that if the OC is not received for the project, then GST is applicable, because the construction is complete when OC is issued by the local body and thus there cannot be any construction service being provided by the builder

7. This is an interesting query. Let me research in the same and come back to you

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

Even when service tax was not applicable on ready-to-move-in properties, developers were escalating the price during possession. With the GST regime, buyers will not benefit, as the developers will escalate the prices due to GST compliances during the construction stage.

However since the land owner is selling the flat allotted to him, and had already collectd extra amount though he informed there is no GST, you may refuse to pay him the demanded GST.

If he is not handing over the property, you may issue a legal notice and also a police complaint for cheating offence

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

Dear Cleint,

If the entire sale consideration is paid after the building is completed, there is no GST liability otherwise who purchases the thing have to pay Tax.

But it may be different in your case, if builder has adopted the idea of no GST to promote sale of flats, than shall be borne by builder but due to lac of proof, liability to pay GST imposed on u, but u can refuse as sale deed already executed.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Ready possession flat doesn't have gst. Is it a first sale or second sale. If your terms are in writing you are not bound to pay.

Prashant Nayak
Advocate, Mumbai
27274 Answers
88 Consultations

4.4 on 5.0


You are purchasing the same from an individual or from the builder?


Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

As far as your case is concerned there was no provision for payment of GST by the purchaser therefore the seller is bound to pay GST out of the sale proceed. It is settled law that in case of concluded agreement the offeror is bound to bear all the expenses incurred in the agreement. In your case the seller is offeror therefore he is bound to bear all the expenses.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0


The GST may be paid from your end and you may ask for the share of it.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

1. When the builder allots the owner share flats to the owner then the builder has to bear the gst on the market value of the flats

2. Whether or not the owner pays the gst, the builder is obligated to deposit the gst for the owner share flats with the government Treasury

3. Builder can later on recover the gst from the owner

4. It also depends on the agreement between the owner and builder. If the agreement states that any gst applicable on the owner share flats will have to be borne by builder, then builder has to pay the gst

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

This is my response to you:

1. The purchaser has to pay the stamp duty (nothing like GST);

2. The stamp duty shall be borne by the purchaser even if the seller has not informed you;

3. If he has told you that you don't have to pay any taxes and you have written or oral proof of the same, then you can send him a legal notice for fraud and misrepresentation;

4. You can recover the dues from him;

5. If you don't want to purchase the flat now, you can cancel the agreement and make him pay for the monetary and mental loss suffered by you.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

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