Is gst applicable on cancellation of a flat

The deducted amount(21429) of the total amount (2 lakh) must to have a document proof / evidence to payment of gst which paid by the builder behalf of you . In that situation the builder is not give you any proof / evidence you should contact the consumer forums . But you must to have the agreement plan as well as when you paid for advance of the amount ,. it's receipt copy . I think this information will help you. thank-you.

Thank you Avirup,

I have original reciept copy given by builder for 2 lakhs.I didnt sign on any agreement document as I gave 2lakhs as token advance and I havent paid full downpayment and when I ask for sale agreement he said Sale agreement wil be made only if I pay 20% downpayment. 

Do you know process to file complaint with consumer forum?

Thanks,

Krishna Y.

 

from which state you belong?

Telangana

well, GST is applicable on advance received from customers for flats booking. considering the issue, the builder would have followed the same rule and paid GST to govt by filing 3B return.


Another thing is that however the advance is returned , the GST amount paid would be returned to builder in some way (reversing the sale advance).

I think he may be benefited by way of Input tax credit, you may ask for full amount as advance reverted back.

Respected
1. Gst in case of purchase of flat is applicable only when occupancy certificate is not issued by local authority.
2. Since in our case you had cancelled the sale transaction the builder should have issued you a credit note along with refund of full Rs 2 lakh, because the ultimate burden of Gst charged by him is on you and you had not taken the credit of Gst paid at the time of Advance of Rs 21429.

Thank you all for reply.. I am still trying my best to get. But builder is not responding in good manner.

As per section 31(3)(e)  of the CGST act the builder shall issue a refund voucher at the time of cancellation of booking and may claim refund of the GST paid on advance received as per section 54(8) of the CGST Act.

Thus you may claim the entire proceeds from the builder on account of the above, irrespective of the sale agrreemnent being made.

Dear Sharaj,

If the advance paid to builder in 2017-18 and cancellation is done in December 2018. The GST paid by builder cannot be reversed (or avail the credit) after September 2018. what will be the case in this scenario? Please suggest.

Hi Sharaj,

What if the booking is taken place in FY 2017-18 and GST on the booking amount is remitted to the Govt. by the builder on the same year. Now the cancellation taken place in the December 2018, can a builder avail the GST reversal credit? Please suggest.

Yes,  I am K.A.Ramam.  Accountant from Gujrat (dealing  Construction line) .  You have paid  Cheque for Rs.200000/-. Builder has to provide GST paid challan on which Month he has filled returns ( showing as GSTR-1 ) showing as booking advance  date/month is required....... He  should give it you.. Otherwise  you have written complient  in GST COMMISSIONER,... WITH PROOF OF YOUR PAYMENT RECEIPT TO BUILDER ( ARE ARE HAVING ANY AGREEMENT FOR SALE) OR  GET GST NUMBER FROM  BUILDER..... THE YOU HAVE LODGED A COMPLIENT  IN GST  OFFICE NEAREST  RANGE-