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GST APPLICABILITY FOR UNDER CONSTRUCTION FLATS GOT REGISTRATION AFTER OBTAINING OC.

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Khaleel Shaik

22 Points Posted on 04 September 2022

I have purchased a flat during Aug 2018, at 90% completed stage. But the Flat could not be taken over as on date, even after receipt of OC due to non-completion of certain basic amenities such as main approach road and other security issues.

Builder has got registered the flats in his name and transfering to buyer later on.
In such scenario,

a)If I take over the flat now, what shall be the rate of GST payable?
b) Shall I have to pay GST to GST Authorities or Builder?
c) But Builder has not provided GST invoice to none of flat buyers who have already got registered?

Please clarify my doubts?

Replies (2)

Quick Summary

This discussion clarifies GST applicability for under-construction flats that have received their Occupancy Certificate (OC) but haven't been handed over to the buyer due to pending amenities. It explains that if 90% of the payment was made before OC, and the flat was transferred to the builder's name after OC (implying GST was paid then), then reselling a ready-to-move flat should not attract further GST. The builder cannot charge GST on the final bill, and buyers should request a GST invoice if applicable.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 04 September 2022

Dear Khaleel

I first of all its thumb rule that there is no GST on ready to move house .
As you have paid 90% of payment towards the flat before construction.
hence when the flat was transferred to builder name (After obtained OC) the GST has been paid by builder at that time.
But now as it is resold (ready to move) no GST is applicable. So the builder cannot charge & collect GST on his bill.

a) Cannot charge GST (But in cost the gst amount is definitely included by builder as paid by him)
(b) No.
(c) ask for the same