Gst on under construction property

208 views 3 replies

I recently paid 23L (after the GST rate came down to 5% from 12%).

I received a demand letter for GST payment for 7% (this was mutually agreed rate at the time of agreement) instead of 5% which is the rate at the time of demand and payment (invoice generation)

They said they will charge 7% for the work completed before rate change, and any new work after this will be charged 5%.

Is this a true logic? I believe the GST rate is an application on the date of demand, payment and not related to work completed before the rate change. 

Please, advise.

Replies (3)

Yes, if work was completed before the rate change, old rate applies.

But in this case some would end up paying more GST. As in my case, GST came into application just after I booked a flat, and now I have ended up paying around 5 lakh of GST, 12% which could have been around 2 lakhs if older service tax was in application that is 5%. If this is as expected scenario how come GST supposed to beneficial?

Yes, that is why Government had asked builders to pass on benefit of ITC to customers, as the same is applicable under GST act, but not previously.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details