Query Related to GST on Purchase of Flat

CA Mohan Jain (Manager - Accounts)     20 September 2019

CA Mohan Jain
Manager - Accounts 
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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??



Jamil Ahmed   20 September 2019

Jamil Ahmed

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If Mr. A has procured completion certificate from respective authority before selling the flats, GST is not leviable. Otherwise he is liable to pay GST.

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