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GST on flat sold partly before OC and partly after OC

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Dhruv Jain

Practicioner

153 Points Posted on 12 October 2021

Assessee is a builder developer and they have made an agreement to sell a Flat before OC on instalments basis. Of which 70 percent of the amount is to be receivable post OC. the client of the assessee is having a contention of not paying GST on the 70 percent as it is payable after OC.

Is there any section or law to refer so as to understand the correctness of this situation.

A response would be highly appreciated.

Replies (2)

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) applicability on flat sales when part of the payment is received before the Occupancy Certificate (OC) and part after. The consensus is that GST is payable on the full amount of the flat sale, regardless of payment timing relative to the OC. The point of sale is typically the registration of the sale agreement, meaning GST is levied as instalments are realised.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121526 Points Posted on 13 October 2021

Flat cannot be sold partly. The deed of sale is registered only once; which is recognized as its sale date; though the payment can be in installment........ AND the POSSESSION be given only after OC.

Point of sale in this case is registration of sale agreement, and hence the GST is payable over full amount, as and when payment installment realized.