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Gst on flat booked in feb 2018

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Sajjan Tawde

112 Points Posted on 09 November 2020

i booked a flat in feb 2018 and my bank disbursed the loan of 11lkh till march 2019. the builder is denying to pass input tax credit although the property was under construction at the time of booking. please suggest how to handle it, or what will be the effective rate of gst 8 or 1

Replies (5)

Quick Summary

This discussion concerns GST implications for a flat booked in February 2018, with loan disbursement continuing until March 2019. The builder is refusing to pass Input Tax Credit (ITC) despite the property being under construction at booking. The core issue revolves around the applicable GST rate (8% or 1%) depending on whether the builder opted for the new or old tax regime, especially since the loan was disbursed before April 1st, 2019. It's clarified that GST is not levied on the loan amount itself.

Shivam RC

Student

23693 Points Posted on 09 November 2020

Sir the Builder / Promoter opted for New Tax Regime or is he continuing with the Old Tax Regime of Real Estate Sector ???

Sajjan Tawde

112 Points Posted on 09 November 2020

He is saying to pay 8% although when i ask him that whether he have opted for one time option he say they have not submitted any option form, so my loan was disbursed prior to 1st april 2019 so what will be the effective rate of gst in both case whether the promoter have opted for old or new

Pankaj Rawat

GST Practitioner

55067 Points Posted on 10 November 2020

When he has not opted for the New Scheme then , it's deemed that he continues with Old scheme.
Yes he is correct the effective rate for affordable house is 8%