Do i need to give 12% gst for my newly bought flat ?

yes sukanta u have to give 12% gst

if ur contract with the other party is inclusive of all taxes then u can pass on the burden of GST on to the other party.

The price is for flat price. I am giving service tax while paying. So it means no abatement will be there in gst? As per current tax 70% abatement is there. So i have to pay huge amount?

yes u have to pay

preeti mam, contract entered and pay advanc e in before gst apply,how gst rate 12 % apply

So no abatement in gst? Is that confirmed? It will increase hugely flat price.

Construction of flats, complex, buildings will have a lower incidence of GST as compared to a plethora of central and state indirect taxes suffered by them under the existing regime. Today excise paid on materials is 12.5% + vat is around 14.5%+ entry tax. As a result, incidence of Central Excise duty, VAT, Entry Tax, etc. on construction material is also currently borne by the builders, which they pass on to the customers as part of the price charged from them. This is not visible to the customer as it forms a part of the cost of the flat. The current headline rate of service tax on construction of flats, residences, offices etc. is 4.5%. Over and above this, VAT @ 1% under composition scheme is also charged i.e 5.5%. What the customer does not see is the embedded taxes on account of cascading and sticking of input taxes in the cost of the flat, etc.This will change under GST. Under GST, full input credit would be available for offsetting the headline rate of 12%. As a result, the input taxes embedded in the flat will not (& should not) form a part of the cost of the flat. The input credits should take care of the headline rate of 12% and it is for this reason that refund of overflow of input tax credits to the builder has been disallowed. thus low flat rates.

CA.OPGoyal
in addition to Neha's views the flat is purchase before 1st July. 17 ,hence only Service Tax as earlier @ 4.5 percent is leviable.further more fillhall Reality / flats are not covered under GST .Reality will continue as earlier taxed pl

A bit confused. Say i wl be paying 20 lakh to builder . Wht amount i have to pay for tax if i pay before 1 st july and after 1 st july?

It depends on situation If you entered into contact (fineshed) before 1 July you have to pay agreed amount if not may check with your agent once

@ sukanta bhattacharjee, Don't worry , see broadly discussing your problem :

a) You have booked the flat before coming of GST(i.e before 1st july), so as per the agreement whatever installment amount you will pay before 1 july you will pay service tax 4.5% on it. This fact is clear.

b) Now, after 1st july, on every installment which you are required to pay to the builder, you will pay GST @ 12% on that installment amount. 

c) Now, you are worried that will this suuden hike in rate from 4.5% to 12% will increase cost for you? The answer is NO. As under GST law your builder will be getting full input tax credit on this 12% rate which he is not getting under current law. So he is required to pass on this benefit to you in form of reduction in prices like waiving of last installment or some other form. If your builder doesn't give you this benefit he will be violating Sec 171 "Anti Profiteering measure" of GST law and will be liable to penalty.

For your knowlede you can refer to the press release issued yesterday by Ministry, its link is"

https://www.cbec.gov.in/resources//htdocs-cbec/press-release/reduced-tax-liability-gstregime2.pdf

Also, you builder may ask you to pay all the installments before 1st july to avoid higher tax, but you need not worry as higher tax will benefit you in form of reduced cost of your flat and its your right to ask for the benefit.

Thanks sir. Can u pls tell me the site where this is published? So i can have valid govt proof.

@ sukanta, this is a press release from ministry. You can find it in "Press and media" tab of site www.cbec.gov.in.Just look for "press releases" under "print and media" in the site. For convenience use the link which i had given in my reply above, its from that site only.

Thanks.got it. Now for say my flat is almost 80% completed and i applied for 25 lkhs for loan. If the bank will approve the loan how can i negotiate with builder for reducing price? What r the possible ways?