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Gst charged buying property before june 2017

Prashant T (Accountant) (66 Points)

25 October 2017

Dear sirs

Very Good Morning and have Good Days, My Name is prashant Taribagal, i am working as a accountant in small scale industries, I have purchase flat @ neral @ 816500/= ( Agreement Value ), My Agreement and registration Done Last Year i.e. July 2016.. And I have paid Cheque/Cash to Builder 690000/= before june 2017. according to their demand

Yesterday Builder send Tax Invoice of Rs.816500/= + 12% GST.

I have not taken Bank Loan, I have taken personal loan from my family members, Now builder is charges GST on fully agreement value Its applicable ? Please advice me

Thanks & Regards

Prashant Taribagal

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (161504 Points)
Replied 25 October 2017

Refer: https://www.caclubindia.com/forum/details.asp?mod_id=429484

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Prashant T (Accountant) (66 Points)
Replied 26 October 2017

Thanks a lot for replied Sir,

In My case Building is under construction, still construction is going on

Before july 2017, project construction was completed 78% to 88%

I have not taken any housing loan from bank, I had taken loan from my familily members and pay the amount to builder accordingly,

before july 2017, I had paid more then 75% to builder, And builder Now charge me 12% GST on my Aggrement value i.e. 816500/= he has send me TAX Invoice of Rs. 816500 + 12% GST

Builder said GST is not applicable for Loan holder, Its applicable only for without Bank loan custmer

Please Can You, Advice or help me please,

12% on 816500/= Its huge amount for me ,

please help to solve my query

Thanks & Regards

Prashant Taribagal

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (161504 Points)
Replied 27 October 2017

" before july 2017, I had paid more then 75% to builder, And builder Now charge me 12% GST on my Aggrement value i.e. 816500/= he has send me TAX Invoice of Rs. 816500 + 12% GST "

Ans: You are not supposed to pay GST over full amount, provided you had paid Service tax and VAT over the amount paid to builder before July, 2017.

"Builder said GST is not applicable for Loan holder, Its applicable only for without Bank loan custmer"

No...... Builder is not correct..........

GST is applicable to all the flat buyers of under-construction units.......... but only over the payments due after 1st July, 2017...... i.e. after the implementation of GST.

Click on the link for more understanding:

top-10-questions-gst-real-estate