I am planning to buy a property in Chennai. Builder is a small concern and property is 1 flat out of 6 in a 1 ground land. Builder didnt mention GST in sale deed and construction agreement but collected 5% and gave receipt. What happens if he does not pay to govt, will I be responsible. Also, is 5% GST applicable in both land and construction cost or only construction.
it is responsibility of builder to pay GST collected from you
2) if builder does not pay GST penalty would be leviable on builder
3)
If he has collected from you and not paid to govt he will be responsible not you. You can also complaint against him if you are sure that he has not paid
No the builder is responsible for same as you have paid amount and have GST reciept for same.
Only construction on land GST is not applicable.
It is the sole responsibility of the seller to collect gst from customers and to deposit it into govt. Accounts.you shall be no way responsible for the same.
The receipt given says amount collected towards GST with builder seal and sign. But builders GST code not mentioned. Is that fine?
The receipt is proof that you have made payment towards GST even if code of builder is not mentioned
Mentioning get registration no. is must. You can claim a tax invoice and the seller is bound to give the same bearing the gst registration no.
If builder fails to give tax invoice you can claim refund of the gst amount from the seller or inform it to gst authority. It is a serious offence on part of the seller.
No, GST number is must how can you give further reference if there is any questions arises in the future.
Gst no should be mentioned and you can verify the same in the govt gst site
See for your evidence you have reciept so no claim agaisnt you can be made.
builder responsibility to pay collected gst.
You can submit a complaint with Gst officer of your Jurisdictional office regarding this malpractice of your builder
without GST code GST receipt is Invalid but you have evidence that you had pai to builder.
You will not be liable to pay the GST if you have got the reciept with GST from builder.
Builder is liable to pay GST to govt and
incase of default of paying GST to govt. The govt can take action against builder under GST act.
The GST on under-construction flats, which are not in the affordable housing segment, has been reduced to 5% without input tax credit (ITC) from 12% earlier with the ITC. The GST rate on affordable homes has been reduced to 1% without the ITC from earlier 8% with the ITC.
The rate cut is for under-construction property or ready-to-move-in flats where the completion certificate is not issued at the time of sale. Properties, for which construction has been completed, attract stamp duty, not the GST.
Under the new definition of affordable housing, you can buy a two-bedroom house (60 sq m) in a metro city and a three-bedroom house (90 sq m) in non-metros and pay only 1% GST.
First of all ascertain that in which category of above you fall in to buy the said proeprty and can pay the GST accordingly, do not allow the builder or seller to take you for a ride in the name of GST.
you may ask the builder to mention the GST code number saying that you want ot verify whether the amount was deposited to the government or not, if not then you may ask him to refund the amount collected towards GST.