This is regarding a real estate company from which I have bought a flat. Here are the sequence of actions in detail.. 1. I have paid 20% amount of sale consideration when I booked the flat on 18-Aug-2016. The flat is on 18th floor. 2. I come to know that the real estate company did not get the approval for the 18th floor, but they have only approval till 14th floor. The company said they are working on getting the approval for a long time. Meanwhile I went to SBI for Homeloan and the bank said that they are also waiting for the approval for 18th floor. 3. One fine day SBI said they cant go ahead with the approval because of some reasons and I went back to the Real Estate company asking what was the reason. However, they said they also dont know but suggested me to go to PNB and provided me the bank contact. 4. I went ahead with the given contact and PNB has sanctioned me a loan to purchase the 18th floor flat which I booked. I have paid the balance amount which is 80% of the sale consideration till that date on 20-Mar-2018. 5. Till then there is a clear difference between BEFORE GST TAX and AFTER GST TAX in their demand letters. 6. The schedule now came to 90% of the payment. However, the Real Estate Company is now asking me to pay GST @ 12% (instead of 4.5% service tax as previous) for all the payments I made after my first 20%. The problems I had faced are.. 1. They have not taken the permission for all the floors when they begin the construction. 2. At the time of purchase of the flat, ,they have permission only till 14 floors, but they dont have permission for 15, 16, 17 & 18 floors. I have bought a flat on 18th floor and paid 20% of the amount before the permission is aquired. 3. They have said the flat will be ready for possession on December, 2018 at the time I bought the flat. But after I bought the flat, they moved the dates constantly Jan 2019, Mar 2019 and now they say it can only be after Jul 2019 for which I was not prepared. I would like to know.. 1. Whether I need to pay 12% as GST on all the amount I pay after 1st Jul 2017? Just to remind that I was ready to pay even before the GST implementation but the approval for the 18th floor is not there with them. 2. Is there a way to compensate them for the delay on the construction? Thanks
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1) you have to pay GST for amount paid after July 2017 .
2) you are entitled to compensation from the builder for delay in completion of construction
3) you can also cancel the agreement and seek refund of money paid by you for delay in completion of construction
1. Sir you have to pay GST on the amount paid after july 2017.
2. You can file a RERA complaint seeking compensation for delay. Also a consumer complaint can be filed for recovery of damages .
GST has become applicable from 1.7.17
so any payments made to builder after this date will attract GST
Recently the GST rate is reduced from 12 to 8%
The permission for 18th floor and your payment with GST are not connected in any way
Once you make the payment after the GST introduction date, you become liable to pay GST and not service tax
You must enter into a registered agreement with builder as you have paid substantial sum
If builder doesn't execute and register agreement with you, you need to file a RERA complaint
The builder will be bound by the possession date mentioned in your agreement or on the RERA website, whichever is earlier
If you do not wish to continue in the project then you can claim refund of all moneys including GST from the builder on the ground of misrepresentation and not obtaining approvals before sale of flat to you
for that you need to file a RERA complaint
the builder could not sell the flat when the floor on which the flat is to come is not sanctioned in first place
The gst for under construction flat is 12 percent. In your case you need to only pay gst for 18th floor if it is legal and approved.
Yes you can approach Consumer court or rera for delay in possession
1. The applicable rate of GST is to be paid for the under construction flat, there's no exception whatever reason you may justify.
2. You can go through the terms and conditions mentioned in this regard in the sale agreement.
