Hello,
I have bought 2 BHK flat in Pune before GST implementation.
Agreement of my flat is registered on 5th March 2016.
I have already paid more than 50% amount to the builder before GST and paid service tax as applicable. (VAT was not paid.)
Before GST, service tax and VAT was applicable but after GST service tax and VAT is replaced by GST.
My builder is charging me GST @ 12% and VAT @ 1% both after GST implementation.
My question, Is VAT applicable after GST? Do I have to pay GST and VAT both to the builder?
I have asked the same question to my builder and they replied as below.
VAT is applicable if an agreement is registered after 1st April 2010 and is to be paid in a subsequent month
from the date of registration of agreement. Your flat agreement was registered in March 2016
whereas GST can into force in July 2017. Hence it was mandatory to pay VAT in your case.
If VAT is also replaced by GST and older service tax @ 4.5% and VAT @ 1% is covered under GST @ 12%
then please share me any government link or document where it is mentioned that
Service tax and VAT both are replaced by GST.
Thank You.
CAclubindia
