Gst on under construction property

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
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
ARTICLESHIP 01 September 2026
Articles

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Foundation

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
28 August 2026
Assistant Manager

NRS AND ASSOCIATES

Kozhikode

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
28 August 2026
Audit Manager

K A R M & CO

Mumbai

CMA

View Details