Hi, the GST charges has to be mentioned in the sale deed as well as in the BBA .. However , it is advisable to settle the matter amicably and find out a way that does not involve litigation

A complaint should be filed before the RERA tribunal which has been especially constituted for property related disputes. But before going to the court a legal notice should be sent.

Regards

Dear Client,

The Goods and Services Tax (GST) rate of 12 percent will be applicable on under-construction properties not on like yours.

Illegal demand, Receipt is enough proof but along with you should have written proof too, that such amount is demanded by builder as GST.

If he fail to mention this sale deed, get at least demand note from builder towards payment of GST.

Consumer complain if maintainable. Also complain to RERA and GST Council.

BBA - Builder buyer agreement.

The applicable GST rate for under construction flats, properties or commercial properties in land or undivided share of land is currently at 12% with full Input Tax Credit (ITC).

The actual GST rate for under construction flats, properties or commercial properties is 18%. However, 1/3 of 18% is deemed as the value of land or undivided share of land supplied to the buyer of the property.

hello

a special tribunal has come into existence which handles only cases related to the property. a case can be filed in the State consumer forum also.

regards

1. application for grant of CC is only filed

2. it is not granted by the authority

3. until the CC is granted, the building cannot be said to be completed

4. the builder is correct in demanding GST

5. you can lock the property by giving some token money and do the registration of agreement after the CC is received. In this way you will save on paying GST

The Government has approved the constitution of a National Anti-Profiteering Authority (NAA) – the institutional mechanism under the GST law to check the unfair profit-making activities. So, you don't need to pay any such amount to the builder and can make a complaint to the National Anti-Profiteering Authority (NAA), New Delhi.

Even if such payment is made by you, it can be revovered if you have proper receipts for the same or it's mentioned in the sale deed, wherein you can also claim interest too.

Bba means Builder buyer agreement.

There is no need to approach consumer forum or RERA for this as this matter is directly connected to GST anti profiteering, and there is a court for such matters, which is the NAA.

You can pay the amount now and get the sale deed registered as well as take the possession of the flat, after that you can recover the amount illegally charged from the appropriate court.

BBA is builder buyer agreement.

You are not liable to pay GST as you have purchased flat after issue of building completion certificate

2) point out that GST is applicable only for under construction flats

3) refuse to pay GST

4) if he insists pay under protest

You can file complaint against builder before consumer forum and seek orders to direct builder to refund money paid bt you fir GST

After the application of GST all have to pay GST on the value of the flat being registered.

See if the Completion certificate is received after 1 July 2017 then on payment the GST is applicable and the builder has to provide receipts of same. if received before it then no GST applicable.

Further ask builder to provide the receipts of same if deny then don't pay. Also you can file a consumer complaint on builder for malpractice and deficiency in service. Can complaint before the RERA authority and you can also complaint before the GST authority for GST fraud by builder.

Sir the BBA is builder buyer agreement. that is a sale agreement. Further you should pay the builder by cheque amount of GST and include the same in sale deed and take receipt of same after that if he has illegally charged same after registration appropriate action can be taken.

Kindly peruse the BBA (Bilder buyer Agreement) carefully.

The GST that is being taken by them will not be mentioned in the sale deed.

In the sale deed he will just mention the amount at which you are purchasing the flat.

If he is charging GST and the same is not applicable then you may approach the concerned authorities later.

Regards

A perception has gained ground in the Indian housing market that the Goods and Services Tax (GST), is only applicable to under-construction projects and hence, ready-to-move-in apartments are exempt from the GST. However, the tax calculations under the new regime, for the real estate market, are not so simple.

For example, the GST on under-construction projects will be charged to home buyers on the sale price but the credit can be availed by the developers, only on the cost of construction. As the builder will have to pay the GST on the full project and the input availed is only on the construction cost, there may be a gap that is no less than 30 per cent. Consequently, whether you opt for an under-construction property or ready-to-move-in unit, the developer will hike the prices in that proportion, to make sure this gap is bridged.

This is the reason that the builder is not reflecting the GST charges in the sale deed.

SIR IF THE BUILDER DOES NOT AGREE THAT WHAT SHOULD WE DO? AND WHAT SHALL BE THE LEGAL PREVIEW AT LATER STAGE THE CASE TO BE FILED IN COURT OF CONSUMER FORUM PLEASE ADVISE US FOR THE SAME . AS WE ARE IN HURRY TO EXECUTE THE REGISTRATION DEED AND WE ALSO DON'T KNOW THE MEANING OF BBA PLEASE LET US KNOW FOR THAT ALSO.

Ready-to-move apartments will have no GST but the developer will only get input credits on construction costs.

Developers will collect and pay GST on the cost of the project.

Apartments may become costlier, due to GST compliances.

The premium charged for ready apartments, will nullify any benefits from the GST.

The GST is also applicable on financial services, at 18 per cent. Hence, loan processing charges are likely to increase in the GST regime. Such charges, always remains a cost in the hands of the buyer. It may not have much of an impact in the affordable housing segment, as the 18 per cent on loan processing charges in the range of 1 per cent, would be practically negligible. However, it will definitely burn the pockets of buyers in the high-end segment.

You may decide the further action judiciously so that your future program for execution of registered sale deed is not hampered.