Gst or no gst - in case of flat sale
This query is : Resolved
20 January 2018
Kindly refer to the language of the GST Law below:
“As per GST law, construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier, is a supply of service and liable to GST.”
My question is regarding the meaning of the 3 phrases ‘after its first occupation’, ‘wholly or partly’, and ‘whichever is earlier’ in the above.
The situation is the following:
There are 2 DIFFERENT Flats in the SAME BUILDING, flat numbers 204 and 203. Flat number 204 is sold out and OCCUPIED and flat number 203 is VACANT.
The Builder had sold flat number 204 to a FIRST BUYER back in 2016. The first buyer had paid stamp duty to get flat number 204 duly registered in his name in 2016 itself. The first buyer is living in flat number 204 since 2016.
I am now buying flat number 203 which is vacant, in 2018, directly FIRST-HAND from the same Builder.
The Builder is NOT Sure if GST will be applicable to his second flat sale to me.
IS IT CORRECT that since I am buying the flat in the Building ‘AFTER ITS FIRST OCCUPATION, WHICHEVER IS EARLIER’, the Builder DOES NOT have to pay any GST on the flat sale to me even though Completion Certificate has not been issued ? and therefore the Builder cannot charge me either for GST ?
By ‘AFTER ITS FIRST OCCUPATION’ I mean that flat number 204 was occupied first in 2016, before I buy flat number 203.
“As per GST law, construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier, is a supply of service and liable to GST.”
My question is regarding the meaning of the 3 phrases ‘after its first occupation’, ‘wholly or partly’, and ‘whichever is earlier’ in the above.
The situation is the following:
There are 2 DIFFERENT Flats in the SAME BUILDING, flat numbers 204 and 203. Flat number 204 is sold out and OCCUPIED and flat number 203 is VACANT.
The Builder had sold flat number 204 to a FIRST BUYER back in 2016. The first buyer had paid stamp duty to get flat number 204 duly registered in his name in 2016 itself. The first buyer is living in flat number 204 since 2016.
I am now buying flat number 203 which is vacant, in 2018, directly FIRST-HAND from the same Builder.
The Builder is NOT Sure if GST will be applicable to his second flat sale to me.
IS IT CORRECT that since I am buying the flat in the Building ‘AFTER ITS FIRST OCCUPATION, WHICHEVER IS EARLIER’, the Builder DOES NOT have to pay any GST on the flat sale to me even though Completion Certificate has not been issued ? and therefore the Builder cannot charge me either for GST ?
By ‘AFTER ITS FIRST OCCUPATION’ I mean that flat number 204 was occupied first in 2016, before I buy flat number 203.
20 January 2018
You are right GST not applicable on your purchase of flat 203.
No Goods and Services Tax (GST) is meant to be paid on ready to move in or completed property.
No Goods and Services Tax (GST) is meant to be paid on ready to move in or completed property.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is any professional CA is here please reply
- Reopen of assessment proceeding
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Putting a heading on received mail
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Gift Received from nonblood relative
- EPF FULL & FINAL RULES IN 2026
- Rental income gst and it purpose
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Reprocessing of rectification order AY 2025-26
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
