Background: Sales Agreement with builder was done before 1st July 2017 and 5% of amount. The Cost sheet provided by builder was with Sales Tax + Service tax. Total Cost - 66,17,400.00 AGREEMENT VALUE (Adding VAT+ Service Tax) - 72,79,140.00 All the payments from me and Bank(Loan) was made as per the cost sheet till October 2017. On March 2019 builder has send revised cost sheet and Final Demand Letter with 12% GST. Total Cost - 66,17,400.00 New AGREEMENT VALUE - 74,04,878.00 ((Adding VAT+ Service Tax of payment made before 1July 2017 )+ 12% GST for payment made or to be made after 1July 2017). Issue: 1) Builder is not reducing GST rate to 5% saying final demand letter was generated before April 2019. But since Final Sales Deed is still not executed shouldn't GST should be applicable as per GST rate at the time of execution of Sales Deed? 2) If builder charging 12% GST then why Input Tax Credit benefit is not provided? I have asked this question to Builder but they are saying we are big company we don't do any illegal thing etc etc. 3) I have written email to National Anti Profiteering Authority(naa.gov.in) but this process takes very long time. Please suggest what is the best course of action to either get GST rate reduced to 5% or get ITC benefit on 12% GST.
1. The date applicable shall be date of demand or invoice raised by the builder so if that is before 1st april it would attract 12 percent GST.
2. See builder shall pass the benifit if he is not passing benifit you can complaint before jurisdictional GST commissioner and Anti profiteering Authority.
3. See that would be as per prescribed procedure so it won't be complete in day or two it can take some time.
1. yes GST shall be applicable as per the prevalent GST rates.
2. if they are not complying with the statutory provisions then you may go ahead and lodge a complaint against them.
3. You may make the payment under protest and later file cases to claim the refund from the builder. You must get the same reduced to 5%.
You may lodge the complaint at the following link also:
https://selfservice.gstsystem.in/
Regards
1)payment, made by the buyer to the builder on or after 1st July, 2017 against invoices issued on or after 1st July, 2017 shall attract GST @ 12%with full input tax credit
2) the fact that sales deed was not executed would not make difference
It's illegal after effective date if change any payments made will be of 5 percent and not 12 percent. You can approach consumer court
This amount will go in his pocket, payment made after change in rate, 5% payable. Ask him if he will give you GST receipt ?
When the last payment was to be made ? if at the time of possession or execution of sale deed than also 5%. Every builder takes benefits of ITC and big fish is more corrupt.
Complain to RERA if builder dose not agree.
Yes please be aware that the reduced GST rates applicable from the 1st April and in case invoice has already been generated before this day then the effective GST rates will be 12% this is only applicable when the invoice is generated in April then the effective rate of GST will be 5% and your payment in this regard will be reduced in case you can negotiate with the Builder if he has not already deposited GST amount hi may cancel the voice and issue a new invoice which is possible to take the benefit of reduced GST rate
1. The GST rate shall be applicable as on the date of execution of the registered sale deed and not on the date of raising invoice if the invoice has been prepared urgently before he latest effective date of revised GST, you may refuse to pay the old rate of GST stating that the rate as on date of execution of sale deed shall be applicable and not the old rate.
If the builder is not accepting your version, you may issue a legal notice condemning him for charging extra amount without any base and instruct him to refrain from charging exorbitant amount in the name of GST.
2. The input tax credit has to be given by all the companies whether big or small, there is no question of any illegal activities, you may include this also in the legal notice.
3. You can attack the builder directly by issuing a legal notice and then drag him to consumer forum but this process may delay the handing over possession of flat.
After getting all the answers there is still confusion: 1) They send me Demand letter on 18th March. Is it same as Invoice? I got 2 different answers above and I am confused- - GST rate shall be applicable as on the date of execution of the registered sale deed. - If invoice is generated before APril 1st 2019 then GST rate of 12% will be applicable. 2) There is no last payment date mentioned on demand letter. They have mentioned an interest of 18% will be payable on all delayed payments. They have just given final demand note without providing details of GST paid(previous amount), and for new amount also they have not given GST details segregation. 3) I have send email to them on 2nd April(and multiple times after that) asking them to reduce GST rates and provide me other details but they are not giving me proper written answer on emails. On calls they are saying we'll reply to your emails. Now if there is a delay by builder itself to give proper response can they ask for 18% penalty? Questions asked from Builder 1 Week back - 1)Why GST not reduced to 5%. If you have decided to go with 12% GST rate(with ITC) then please provide the document submitted to jurisdictional officer stating BSCPL has selected 12% GST rate. 2) If 12% gst is selected then why ITC is not passed to us and demand letter was generated with 12% GST without passing benefit of ITC. 3) As per new cost sheet it is mentioned that 12% GST is already paid for the amount deposited by me and bank(loan) till 10.10.2017. Please provide GST invoice for the amount paid to govt as per new cost sheet.
It will be applicable as per date of payment and effective get on date of payment
1) demand letter sent on 18 th March is same as invoice
2) GST at 12 per cent would be applicable as bills raised before 1st April
3) you are entitled to break up as demanded by you
You may repeat all these questions once again in writing and send it by registered post and demand immediate reply from the builder. In this letter you may also add other woes which are to be clarified from the builder or which are also cause of concern.
This letter by registered post will be an evidence for you to approach consumer forum at a later stage if the builder is not cooperating with you now.
1. Demand/ Invoice raised prior to the 1 April 12 percent is applicable.
2. See last date is not material in this though you can ask for a invoice showing proper details of GST and the payment.
3.See if there is delay on there part builder then they cannot levy interest on same.