GST on under construction property
Query (Issue) Started By: – Jitender Kumar Dated:- 9-8-2017 Last Reply Date:- 9-8-2017 Goods and Services Tax – GST
Got 3 Replies
GST
I am Jitender Kumar and stay in Bangalore, recently we have bought a flat in Bangalore on 29th May with the advance payment of 20% of total cost as booking amount. Builder has provided us payment slab with Service Tax as 4.9% which we have to pay every alternate month from August onward.
Since GST is in place now builder is asking us to pay 12% GST on the pending slab though we have booked the flat before July itself rather than 4.9% earlier service tax. This is creating a burden of additional 4 lakhs on us.
I believe that builder should not ask increased tax
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vt also issued circulars to discharge VAT till date of receipt as against the earlier practice of payment of VAT at the time of Registration) on 20% of the Advance amount that you have paid.
With effect from 1st July under GST, Flat sales are taxed @ 12% effective rate, and GST is liable on 80% of your Flat value @ 12%.
However Builders are given seamless credit in GST regime by allowing Input tax credit tax on all the purchases & services that has been received by him. As per Anti profiteer provisions of GST, he should pass on atleast 3-4% of tax reduction to the buyer.
You can question him the same. He may get a discount/reduction of 4% GST.
Reply By Jitender Kumar:
The Reply:
Thansk Vamsi Krishna
Information provided by you really
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