Mr. A is the owner of 6 acre land. Mr. B proposed is a builder who proposed Mr. A , that he will built flats on his land. total 60 Flat built in 3 Blocks. Out of which, the sale proceed of 50 Flat will belong to Mr. B and sale proceed of 10 Flat will belong to Mr. A.
Mr. B the builder is a corporate and registered under GST and while selling the 50 flats, he is charging GST, however, the registry is being made by Mr.A (Seller and Land owner)
However, Mr. A while selling his part of the flats (10 flats), he is an individual and not charging GST, but the Seller in the sales deed has put a clause that, in case the government recovers any GST from him, the buyer will be liable to pay the same along with Interest and Penalty.
I am buying one of the flat without paying GST, but I am worried that, in future I may land into troubles.
Kindly advice what should I do??
CAclubindia
