Menu
Payment to builder
our client have brought a flat in april 2016 and some amount is due for payment to the builder. the due payment is rs 5,00,000 lacs. now builder is demanding gst on rs5,00,000. is it needed to pay gst on the due payment. agreement is done in april 16.
Replies (6)
GST on completed Flats/Property or ready-to-move-in property
Transfer of completed flats, property or ready-to-move-in property will not involve any service part to the buyer. Hence, GST will not be applicable in such transactions. Because it is neither supply of goods nor service.
Hence, if you are buying a completed flats/property or ready-to-move-in property, then you may save the GST cost.
GST Tax Rate for under construction flats, properties or commercial properties
The applicable GST rate for under construction flats, properties or commercial properties in land or undivided share of land is currently at 12% with full Input Tax Credit (ITC).
The actual GST rate for under construction flats, properties or commercial properties is 18%. However, 1/3 of 18% is deemed as the value of land or undivided share of land supplied to the buyer of the property.
Refer this below image for the clarification given by Central Board of Excise and Customs (CBEC).
Transfer of completed flats, property or ready-to-move-in property will not involve any service part to the buyer. Hence, GST will not be applicable in such transactions. Because it is neither supply of goods nor service.
Hence, if you are buying a completed flats/property or ready-to-move-in property, then you may save the GST cost.
GST Tax Rate for under construction flats, properties or commercial properties
The applicable GST rate for under construction flats, properties or commercial properties in land or undivided share of land is currently at 12% with full Input Tax Credit (ITC).
The actual GST rate for under construction flats, properties or commercial properties is 18%. However, 1/3 of 18% is deemed as the value of land or undivided share of land supplied to the buyer of the property.
Refer this below image for the clarification given by Central Board of Excise and Customs (CBEC).
Have you got the possession of your flat
possession not given. flat is under construction
Then gst is applicable.
Yes ,.. the GST applicable, Builder is liable to charge GST
👌👌👌
Recent Topic
- Is CA through direct entry easy for a commerce stu
- Dividend and withholding tax - DTAA- RSU
- NRI Query: Capital Gains Tax Exemption under Secti
- Royalty payment to UK
- Calculate ITR2 tax with equity and non equity prof
- LTCG on residential property sale - Rebate?
- TDS MISMATCH AND AIS
- Return filing for intervening period upto date of
- EPF Withdrawal taxation
- While e filing otp not generating
Related Topics
CAclubindia
