Dear Sir,

Please ask your above question on www.taxfull.com which is sister concern of www;kaanoon.com, where is experts will be Chartered Accounts.

You would have to pay GST even if you pay after 1 month as it is computed as to when the invoice was raised.

In order to see complete refund you will have to show some sort of deficiency in service on part of the builder or any unfair trade practices adopted by the builder which you would have to prove your reasonable doubt in a court of law.

In my opinion, you should not ask for cancellation until unless you have irrefutable evidence showing breach of contract on part of the builder, else you would lose a substantial amount as cancellation charges.

Gst shall be payable at the rate when demand and invoice is raised by the builder so in the said bill 12 percent gst is to be paid further it won't be a sound step to pay interest for saving some GST.

Further if you doubt the quality of the construction get opinion of architect on same then only proceed for cancellation if construction quality is low then builder is not liable to deduct the 10 percent funds as per agreement.

Further the builder gain only input tax credit on GST so in my view for same he would not increase construction pace as construction cost increase on increasing pace.so first check the site get the view from architect on construction quality. If the quality is good then cancellation is not advisable.

1) it does not make sense in cancellation of booking when you ha e already paid 75 per cent of amount due and payable 

2) merely on basis of suspicion don’t cancel the booking 

3) on cancellation of booking you lose 10 per ce t of booking amount

The allottee have the right to cancel/withdraw his allotment in the project .

 Provided that where the allottee proposes to cancel/withdraw from the project without any fault of the promoter, the promoter herein is entitled to forfeit 10% of booking amount for the allotment. The balance amount of money paid by the allottee shall be returned by the promoter to the allottee within 45 days of such cancellation. 

1. the GST council has only made recommendations for the new reduced GST rates effective from 1.4.19

2. until and unless the government issues a notification in official gazette based on above recommendations, the reduced gst rates will not be applicable

3. thus it can be said that the reduced rates are only a proposal and it may be accepted or rejected by the government

4. if at all the notification on reduces rates is issued, then all invoices raised prior to 1.4.19 will be applicable at the normal rate of 12% with ITC benefit

5. all invoices raised after 1.4.19, will be applicable for gst at 5% with no ITC benefit

6. if you cancel the booking, you will not only lose the penalty on cancellation as stated in the agreement but also it will be very difficult to get refund of the stamp duty, registration fee and gst paid so far

7. so it will be wise to wait for completion 

8. also you can approach RERA and request a cancellation only if there is a violation by the builder of the rules and regulations under RERA and not otherwise

9. in absence of any default by the builder, you will be bound by contract entered into with the builder 

10. the quality of workmanship of construction can be doubted only after possession is given and during the defect liability period of 5 years from date of possession. So any complaint by you on the ground of low quality construction will be considered as pre mature 

1. IT would be highly unwise to cancel the booking, when you consider the following:
a) Loss of Capital & Interest thereon, which the Builder would be deducting. Typically there would be no legal recourse to recover this, IF everything is going on schedule.
b) GST amount and interest thereon, which is not-refundable
c) Infused Capital erosion

2. Instead negotiate with the Builder for sale to somebody else thru him on profit sharing.

3. Best is to capitalize costing and maybe LTCG, when sold after possession.

Keep Smiling .... Hemant Agarwal

Dear Sir,

My answers are as follows:

My question1- I have a part payment pending for Feb 2019. If I delay this payment to builder by 1 month and pay in April 2019, I will have to pay an interest of 12%( per RERA guidelines and sale agreement). Will I be able to save on GST by delaying this payment to after Apr 1, 2019 when 5% GST kicks in? or Will I still have to pay 18% GST as the invoice for 3rd Floor slab was raised by builder in the month of Feb 2019.

Ans: one must file GSTR-3B to report the ITC and make necessary GST Payment every moth so you may delay to pay the pay the payment to the benefit of slash in GST.

2) Does it make sense to cancel the booking when I have already made payment of 75% of the flat cost.

Ans: It is no wise to cancel the booking and you could not get the new flat at the old rates.

3) If I cancel the booking on the grounds of quality suspicion since the 1st, 2nd and 3rd floor slabs were completed within 3 months. Is it possible to complete the construction at this pace when the curing time of each slab itself would be at least 1 month.

Ans: You can do that but it must be supported by the a report of concerned engineers. You should not agree with the quality of the building.

4) If I cancel the booking, I stand to lose 10% of the cost of the flat which is a huge amount. is there any way I can seek legal recourse to get refund of this amount.

Ans: yes, if you allege and prove that it is not up to agreed standards and below quality building.

5) Additionally if I cancel the booking, do I also stand to lose the GST paid on every payment, which is substanial or can I get refund of this amount on cancellation?

Ans: yes,definitely.

6) Please advsise which is the better option- to cancel the booking or wait until completion

Ans: It is better to wait until completion and collectively bring pressure on the builder to improve the quality.

Please note that the GST is charged on the date of the invoice so in case if you are looking to be for the payment this is not going to making any profit out of that the invoices issued after the revision of GST rates will attract only 5% of GST but in the previous received invoices the amount will be charged at the rate of 12 percent

Don't cancel the booking at this stage. The gst reductions are not restrospective and are applicable from its effective date only

1. If the invoice has been generated before then you will have to make payment as per the previous rate of GST.

2. No, if you think that the project will be completed on time then there is no point in cancelling the same and giving your hard earned money towards cancellation charges only. 

3. That is no ground, if the same on site is completed then no such objection can be made. 

4. No

5. Make the payment and wait till completion. If there will be a some quality issue then OC/CC will not be issued by the government 

On cancellation of booking you may not get the refund of the GST paid already.

Cancellation charges will not be as heavy as what you predict, you may cancel it through RERA.

If you delay the payment then you may have to pay the GST at prevailing rates.