No it will not be covered under gst and will not attract it
I am going to purchase a flat by bank loan which is land owner's share. We are preparing sale agreement. Now my doubt is about the applicability of GST. As I am purchasing it from the land owner share so will there be any GST ? If yes what will be the rate? as land owner does not have any gst no, is the same applicable.
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- The GST is applicable only on the purchase of under construction property – residential or commercial from a builder involving transfer of property in land or undivided share of land to the buyer, @ 5% ,
- As per law, the Seller is responsible for the payment of GST , but being an indirect tax, the Seller can collect the tax from the buyer/customer as well.
- For resale properties, there is no GST , and In the case of land sale and purchase, GST is not applicable also.
- Hence, you are not under obligaton to pay the GST as per law.
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GST is applicable on under construction property thus if you had purchased share after completion then no GST at all, and if you purchase before completion then GST is applicable on flat value after reducing land value
In case of JDA, both builder and landowner needs to register themselves under GST and pay GST.
2) GST is payable on under construction property,Property is said to be under constructed if certificate of completion is not received.you have to pay GST if you are buying under construction property,otherwise not.
Dear Sir,
If you are purchasing ready to move flat then no GST is applicable.
If in any case you are liable to GST then you need to pay it to the person who is selling flat to you. Ask for the tax invoice with GST no.of the supplier.
In your case, if the landowner sold flat to third party during construction by the builder then landowner will be liable to pay GST.
In case of JDA, both builder and landowner needs to register themselves under GST and pay GST.
Ready to move flats are those where completion certificate is issued by the competent authority or first occuptation of flat whichever is earlier.
No GST will not be applicable as you are purchasing the flat from an Individual and not from developer.
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.
You may purchase the flat after construction is completed and OC is issued then no GST would be applicable.
If you are buying a flat from Individual owner who are not a builder then you need not pay any GST but remember that the GST will be included in the price or sale consideration amount.