I am purchasing a 'ready to move in' house with Ocuupancy Certificate issued.
Accordingly no GST is applicable on the sale and none levied.
However the Builder has levied a certain penal interest for late payment and is also asking for CGST and SGST on this amount.
Q1. Is the builder correct in levieng GST on penal interest - when the basic invoiced amount is free from it?
Q2. If above is in affirmative, what should be the rate ( SGST and CGST)?
" Is the builder correct in levieng GST on penal interest - when the basic invoiced amount is free from it?"
No, he cannot make you liable for his fault.
Yes, if you have delayed payment as per agreement, and when interest is charged over it by builder, in that case GST will be levied by builder over the interest charged ( @ 18%)
R P S K & Associates
Nashik
CA Inter
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O P Bagla & Co LLP
New Delhi
CA Inter
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CAclubindia
