I have booked a flat on 10-1-2018 and agreement has done. in such case GST will be calculated in which amount actual purchase value or on the govt value of the flat. actual purchase value will be approx 30 L and govt value likely to be 20L. plz reply
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GST applicability in case of purchase of flat?
Replies (14)
As per your agreement value......
any clause is there?
Refer: 1. valuation-of-supply-under-gst
2. valuation- under gst
If flat is sold after completion then no gst on it... If booked during construction period only then gst is applicable... Gst on ur agreement value... Which is payable by cheque
and the rate if the builder take ITC
Gst rate is 12% on flat
will I get refund out of it if builder takes ITC
No refund.... Purchase completed flat... No GST on that... If builders are taking itc... Then itc benefit will be pass out to buyers... That means flat will be at reduced rate upto benefits of ITC
But in actual no builders are passing benefits of ITC... They are just collecting gst @ 12% on their base price from customs and taking itc @ 28% on materials purchased... If they passed benefits of itc... It will at very low price to customers and that things never gonna happen
is there any way to restrict such fraud
GST Value for Apartment Sale.
1. If it is completed then there is no GST liable. The ITC credit - which could vary between 8% to 12% ( no ITC on land + some other materials used) needs to be reversed by the builder as the sale is not liable.
2. If in progress. The ITC of 8-12% would be available to set off against the liability of 12% in case of an agreement to sell to buyers. Normally in accounting, the credits are not considered as cost. However, in sft rate quoted the price as per agreement ( need to verify) is exclusive of GST. normally. Some builders quote all-inclusive. If it is flats given to landlord the GST rate would be 18% as in that case builder only works as a contractor and value would be only the construction value to be computed as per valuation rules.
Buyers may ask for the all told cost when they decide for comparison purpose as whether he is passing on the benefit or not is not a legally questionable where the price quoted is depending on demand/ supply and negotiation skills of buyer and seller.
Price is fixed as per demand supply rules.... Buyers are purchasing flat in black money then how could u restrict that fraud... Demand inflate the price of flat.... There is anti profiteering committee formed by government for restricting that
Buyers himself inflate the flat price as per their demand... And they pay half consideration in cash and half in cheque... Then could u tell anything to counter party.... Sale consideration is showing less in agreement to avoid stamp duty... Etc.... So no restrictions on all these...
When government is not able to restrict bank fraud... Then what are u expecting.... Every year there is big scam under the nose of government.... 11800 crore fraud in PNB single branch... Fraud continues since 2011...and one able to detect that fraud
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