Dear professional colleagues,
Greetings to all.
My doubt is on applicability of GST on last disbursement payable to builder after 01/07/2017.
I entered into the agreement to purchase my flat in January 2017. I also paid Vat and Service tax in full at the time of agreement. Now only last disbursement is payable to builder as the possession is given.
The builder says that GST will be applicable to the last installment as it is being paid after 01/07/2017. Whereas my views are; I have paid full Vat and Service Tax already which was applicable while the buying took place. Now after 01/07/2017 I am only paying my outstanding payables. It's not buying or selling of property. Therefore GST will not be applicable. That would count as double taxation as I have already paid Vat and Service tax on full agreement amount in January 2017. Now no tax is due from my side even if I am paying last disbursement after 01/07/2017.
Please guide me if my understanding is correct.
Quick response is appreciated.
CAclubindia
