Gst on flat already booked

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I have booked a flat with builder for which i have paid 30%on booking and on which composite service tax has been paid @ 3.05%. 1% vat was payable on agreement to be entered and registered. However builder says that 1% vat is payable now on the 30% advance paid as there is change in law wef 1st May 2017. Builder says that post july gst will be payable @ 12% on balance 70% payable. Presently i am paying 3.05% service tax & 1% vat which will become 12% gst.i.e. additional 7.95% on the 70% i.e. 5.5% of flat cost. Is this correct? If so what about the input credit available to builder shuld he not pass on this benefit to buyers. What if he says the flat cost is already agreed in allotment letter & doesn't reduce. As i understand in gst the seller is not suppose to take advantage but pass on the benefit to buyer. Please advice
Replies (2)

Under GST construction of complex,building, civil structure intended for sell to buyer is liable to 12% GST witll availability of input tax credit. First your question with connection to payment of 12% GST on the remaining amount of 70%. yes, you will have to pay GST @ 12% on the balance amount as the provision says "The goods/services supplied after the appointed day in pursuance of a works contract entered into before to the appointed day shall be liable to GST".And yes the builder will be liable to pass on this benefit of credit and to ensure that sec 171 "anti proiteering measure" is prescribed by CGST act.

 

Thank you Shivam Chomal ji.

D.M.Udeshi

 


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