1. if the builder has obtained Occupation Certificate or Completion Certificate from the Municipal or local body for the project in which you are buying the property, then there is no need to pay GST

2. GST is applicable only for under-construction flats as there is an element of service and also sale of goods involved before the construction is completed

3. Collecting GST from flat buyers and depositing the same with government is the liability of builder

4. If the builder has not obtained OC or CC or if such a certificate is not issued by the local body then you can request the builder to specifically mention in the sale agreement that the flat is completed in all respects and is being sold to you as such

Even if the occupancy certificate has been issued only for part of the building scheme, the ready units, for which the documents have been secured, will not be taxed. The tax will be applicable only to amount paid for flats under construction and the ready units with occupancy certificate cannot be taxed.

You won't be liable, even if builder doesn't pay GST.

Dear Cleint,

GST is applicable on under construction property and not on ready to move in property. 1% TDS if purchase value more than 50 lacs.

1. I have different understanding about GST.

2. GST is charged on all the transactions made after July, 2017.

3. In the instant case, you have booked the flat after July 2017 and the CC was obtained (if at all obtained) after July 2017.

4. So, you shall have to pay GST.

5. Make an amended agreement opr take a l;etter from him stating that the price he has quoted/agreed is inclusive of GST and it will be ideal if he mentions the price of the flat plus 12% GST charged thereupon separately in the said letter.

6. He is supposed to pay the GST and get back the tax he has already paid.

7. However, you shall be safe if he mentions in the letter and also in the sale deed the price of the flat and GST charged thereupon separately aggregate of which should be equal to the amount at which he has agreed to sell the said flat to you.

Hello,

The builder is right.

If he is not asking you GST individually then he must have included the same in the price.

In any view of the matter you will not be liable for not giving GST.

Just make sure that in the sale deed or agreement to sale it is mentioned that all the taxes in relation to this property has been paid by the builder.

Regards

If the builder has not made any mention about the GST in the agreement, you need not worry about it because it is the builder who has to pay the applicable GST and not you.

You can pay GST only when demanded

Therefore it is the botheration of the builder to pay the applicable GST to the government and it will be only he who can be held responsible for such taxes.

If the builder has stated that he has already paid all the applicable taxes, you can remain silent about it .

Up to last year December, there was a lot of confusion regarding the applicable GST rate on real estate or property purchase. However, the Central Board of Excise and Customs (CBEC) recently issued a clarification regarding the applicability of Goods and Services Tax (GST) on the under-construction and ready-to-move-in property.

Transfer of completed flats, property or ready-to-move-in property will not involve any service part to the buyer. Hence, GST will not be applicable in such transactions. Because it is neither supply of goods nor service.

If you have already paid tax for the same flat it can't be double charged but as you said builder didnt charge you gst. Generally gst is not applicable for ready possession flats after oc.