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Gst on property purchased

Kalpesh (Sr. Finance Analyst) (59 Points)

28 May 2017

Hello All,

I have purchased a 1 BHK flat and my flat registration already done, now bulider is asking me to pay Service tax and VAT amount before 1st July as GST going to apply, but my registration done before 1st jully and builder is liable to pay ST & VAT to Govt. so is it right to pay new tax amount to builder or i have gt charged as per old ST & VAT Rate.

Please Hel me to understand these......

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11 Replies

Lekhu Nyoliwala (92 Points)
Replied 28 May 2017

Flat already registered means eirher you have been subjected to Service Tax or if the builder has obtained Completion/Occupancy Certificate no service tax should be charged legally.

VAT liability depends on which state you have bought the property in.

2 Like

Studentsca (CA Practice ) (3577 Points)
Replied 28 May 2017

If you have already purchased the flat then I am assuming you have paid the entire consideration amount to the builder. Only taxes are left to be paid. In your case the contract has been entered prior to GST, payment has been made prior to GST and also supply has been done prior to GST. Hence you are liable to pay Service Tax and VAT and not GST even if you pay after 1st July 2017. But take a second opinion also.

1 Like

Kalpesh (Sr. Finance Analyst) (59 Points)
Replied 28 May 2017

Thanks for details i have not pay complete amount Loan amount is still payable to Builder by bank, as loan procedures still not completed. but disbursment procedure will complete before jully only.

If loan done and bank paid amount to builder still the same is applicable ?

Studentsca (CA Practice ) (3577 Points)
Replied 28 May 2017

Yes because the procedure would be over before July. Hence the builder would receive consideration before July. Since GST is applicable not before July it cannot be taxed under GST.

1 Like

Kalpesh (Sr. Finance Analyst) (59 Points)
Replied 28 May 2017

Originally posted by : Studentsca
	Yes because the procedure would be over before July. Hence the builder would receive consideration before July. Since GST is applicable not before July it cannot be taxed under GST.

THANKS

Studentsca (CA Practice ) (3577 Points)
Replied 28 May 2017

You are welcome !!!

padam bhandari (2 Points)
Replied 04 June 2017

HI
I am planning to book new flat in ready to move construction
bank process is just start can I get the benift of GST?
PLSE HELP
.

Studentsca (CA Practice ) (3577 Points)
Replied 04 June 2017

What do you exactly mean by "Benefit of GST"? Could you please clarify?

chirag bhatt (2 Points)
Replied 18 June 2017

I am about to purchase a flat, the builder has got OC 2 weeks back, what will be the impact of GST if i register agreement before 30 Jun and after 1 Jul and the other question impact of GST if i pay part amount before 30 Jun and balance after 1 Jul

ss ss (2 Points)
Replied 27 June 2017

Hello sir new your expert advice, I have purchased a new ready to move 1bhk flat in virar without oc.i took a home loan from indiabulls and I'll be getting home loan cheque by 29-30 June 2017, stamp duty registration is already done, i have also paid vat and service tax money to builder but builder is saying that he won't be able to pay the gov service tax vat money until and unless he receive the bank sanction amount in his account. I want to know that am i liable to pay the difference amount after the gst comes. Coz even if the builder deposits the cheque on 30 june it will reflect by 2 July. Will i be exempt from gst or do i have to pay the difference amount. Plse help me out.