January 19, 2018

GST rate on real estate or under construction property purchase 2020

Effective from 1st April 2019, there is a huge change in the GST rate on real estate. Let us understand the applicable GST rate on real estate or property purchase in 2020at both levels of under construction property and completed property.

GST on Property

Up to last year December, there was a lot of confusion regarding the applicable GST rate on real estate or property purchase. However, the Central Board of Excise and Customs (CBEC) recently issued a clarification regarding the applicability of Goods and Services Tax (GST) on the under-construction and ready-to-move-in property.

You may all aware that GST was implemented from 1st July 2017 in India by replacing the existing service tax regime.

GST rate on real estate or under construction property purchase

Now let us understand where the GST is applicable on real estate. As I said above, there was a huge confusion among property buyers due to no clarity in this front. Many builders created some fear among buyers that post GST the property values will go up and hence better to buy it before GST.

Also, due to unavailibility of proper clarification, many buyers felt it helpless and accepted stories created by builders.

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 rate on Under Construction Flats or Property

GST rate on under construction property will be classified as below.

# Property for which Completion Certification issued

If the builder got the completion certificate before you purchase it, then it is considered as ready-to-move-in property. Hence, in such cases, there is neither supply of goods nor service. Therefore, no GST on such properties.

# If you paid the full sale amount to the builder before 1st July 2017

If you paid the full sale consideration amount before the applicability of GST (i.e 1st July 2017), then GST will not be applicable in such situation.

However, as the transaction was done before the implementation of GST, service tax @ 4.5% has to be payable by the buyer in this regard.

# If you paid the part of sale amount to the builder before 1st July 2017

If you paid the part of sale amount to the builder before 1st July 2017, then GST will not be applicable to such part payment.

Because as the transaction was done before the implementation of GST, service tax @ 4.5% has to be payable by the buyer in this regard on such part payment.

# If you paid the sale amount to the builder after 1st July 2017

As the transaction happened post-GST implementation date, in such transactions GST will have to be payable by the buyer.

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).

However, effective from 1st April 2019, this is slashed to 5% WITHOUT 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). Please refer below image to understand the definition of what is the meaning of Under Construction of the Property and what is Ready To Move In Property. But do remember that rates are now changed effective from 1st April 2019.

GST rate on real estate or property purchase

GST rate on resale property or resale flats

As per above clarification, such resale property or resale flats are considered as ready-to-move-in properties, GST will not be applicable in such resale transactions.

GST rate for homes purchased under the Credit-Linked Subsidy Scheme (CLSS)

Effective from 25th January 2018 (Refer this NOTIFICATION), if you purchased the property under the Credit-Linked Subsidy Scheme (CLSS), then the applicable GST rate will be 12%. The effective rate of 8% after deducting one-third of the amount charged for the house towards the cost of land.

However, effective from 1st April 2019, the GST applicable for CLSS house is 1% without Input Tax Credit (ITC).

What is Credit-Linked Subsidy Scheme (CLSS)?

If you purchased the property under the schemes like:-

  • Economically Weaker Sections (EWS)
  • Lower Income Group (LIG)
  • Middle Income Group-1 (MlG-1) or Middle Income Group-2 (MlG-2) under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana (PMAY Urban).

Hope this will clear many doubts about property buyers.

Let me bring in the new rate in a tabular form as below.

Latest GST Rate on Real Estate 1st April 2019

The link for the new notification of Government is HERE.

Refer our other posts related to real estate:-

757 Comments

  1. I have booked a flat in January2020 & Registration done on February 2020
    My flat is situated near Kolkata
    It’s a under construction property
    Super-built area-650 sq. ft.
    Flat value-19,50,000/-
    Now, the developer is demanding 5% GST. Is 5% gst is applicable for this flat

    Reply
  2. Dear Sir,
    I had booked a flat in an under construction property in 2015 in Mumbai. I have paid 70% of the agreement value in first 2.5 years with applicable service tax & VAT (in first 2 years) and then GST (in 2018). As per my contract, I have to pay balance 30% on possession, which is planned in Sept 2020 (delayed due to Covid). Builder is charging 12% GST (and not 5%) on the balance amount now. Though the building is likely to be ready by Sept, builder has received conditional OC dated Sept 2019 and he is giving fit-out possession to all buyers since then. My question – Am I liable to pay 5% GST or 12% GST on the balance amount to be paid now?

    Reply
  3. Hi Sir,
    We had a Joint venture with Builders. They started their construction by 2015 end. And sales started before completion. Now they say like we need to pay them a 12% GST. They are not confirming us whether they got completed certificate or not. Also they are not sharing any receipts. We tried to ask them to raise invoice on behalf. For that also they are not giving proper response. Kindly provide us with some of your inputs.

    Reply
    • Dear Pavi,
      If they are not ready to share the information, then how can I guide you?

      Reply
  4. Sir,
    I have purchased a flat in ahmedabad with carpet area 53.14 sq mtr , loan approved by SBI under CLSS HL – LIG on Oct 2017 (under construction scheme in 2017). For which i have availed PMAY benefit too. Now the flat is ready for possession. When we had a word with the builder he is asking 12 % GST from us. Wherein he has charged
    5 % GST from many other people and has even charged 18 % from few. Is that in hands of a builder? What would be the actual GST i need to pay today as the building was under construction when i purchased in 2017.
    Please guide me against the malicious intention of the builder.

    Reply
      • what can i do now ? what is the GST i have to pay??

        Reply
        • Dear STQ,
          Approach the GST to complain website and complain against the builder. The rates are explained in the above post.

          Reply
          • What is the GST i have to pay 5% or 12% ?

            Reply
              • Can you guide and help me with the complaint and procedure.

                Reply
  5. I have booked a flat at Mohali on 29th April 2015 .Payment as per agreement is as under
    Base Price :Rs 38.47 lacs
    Club charges: Rs 75000/-
    Power Back up:Rs 60,000/-
    IFMS:43000/-

    Now, flat is ready for possession, received demand for final payment including Service Tax/GST. The demand break-up is as under
    Date from Date to Amt ST/GST rate
    24-09-2015 100000 3500 3.5
    01-06-2016 30-06-2017 2592900 116680.5 4.5
    686964.29 41217.86 6
    183190.48 9159.42 5
    192350 12136.37 6.31

    Club Charges 75000 13500 18
    Power Backup 60000 10800 18
    43000 0

    I wanted to know that Service tax/GST demanded by Builder is in order
    If it is not then what should be correct calculation of Service tax/GST

    Yours early replies in this regards will be highly appreciable.

    Thanks & Regards

    Reply
  6. Hello Team,

    Please guide, for now in Feb 2020 if your aggrement value is above 50 lacs, do you have to pay GST, ServiceTax, VAT …all 3?
    or only GST ?

    Reply
  7. Dear Sir,
    I booked a under construction flat on 23/01/2020. The occupancy certificate was expected to be received by March 15, 2020. The builder gave me a cost sheet informing about the base price, 5% GST and other expenses. A booking form was filled with an understanding to sign the agreement for sale and make the first payment of 10% on or before 20/2/2020.
    We visited the the builder on 20/2/2020. We signed the agreement and all the documents and when we were about to make the first payment we were made aware that the occupancy certificate has been received on 17/02/2020 so GST will not be applicable. Also usually the builders increase the base price after receiving OC. Hence they are deliberating on this matter and informed us the agreement has to be changed. Please let me know what can be done.
    1) Is GST applicable in this scenario?
    2) Can the base price be changed by the builder?

    Thanking you
    VK

    Reply
    • Dear Vinayak,
      1) NO.
      2) They can and they are hard to trust.

      Reply
      • Hello Sir,
        Thank you for your guidance. i have one more query with regard to point 2. In case the builder insists on increasing the base price, Are there any RERA or any rules you are aware of which can help us in this regard?

        Reply
  8. Dear sir i have been looking to book a flat which is under construction..how much gst i have to pay to the builder??

    Reply
  9. Dear Sir,
    I had purchased a under construction flat in Dec 2018 whose construction started from Oct 2018. I had paid the builder with a gst of 8% till jun2019. Now I am paying a gst of 1% as it is under construction property. I had also applied for pmay benefit under mig scheme.

    A) What will be the gst amount payable after the possession is offered by the builder?
    B) is the gst paid in excess after the implementation of new gst for under construction property i. E 1% refundable. Means if, I’ve paid 8% gst instead of 1%,can I claim to the builder to refund the amount in excess.
    C) do I need to pay the previous gst of 8% at the time of possessionas mentioned in the agreement?
    D) what will be the rate of gst at possession for pmay mig scheme benefit holders?

    Reply
    • Dear Dewanshu,
      1) It is same as now.
      2) Rest with your builder.
      3) I don’t think so.
      4) Why GST when you receive the possession?

      Reply
    • I have booked one flat in Daman on December 2018.
      Carpet area is 63.57sqmt and cost is 1638000 rs
      Till today possession not given.
      Builder is asking about GST @5% wherever I read that GST should be @1%.
      Please advice exactly rate of GST which I should pay to builder.
      Thanks and regards

      Reply
      • Dear Shikha,
        I have already explained the same in the above post also.

        Reply
  10. Sir,
    We are planning on purchasing a flat that is still under construction. (construction started in 2017) we are going to apply for loan now. We got to know that we are eligible for 12% gst. Is it not 5%??

    Reply
  11. SIr,

    I have few small queries:

    a) Is not GST (12%) applicable for land value and construction cost for a new apartment??

    b) Can builder also charge GST for BESCOM and BBMP charges and Club Membership ??

    c) Builder must give GST receipt for whatever he has charged, right??

    d) Can I take the GST paid for apartment as “input credit” in my GST payable for my business??

    Kindly let me know, Sir!!

    Reply
    • Dear Rao,
      a) It is not applicable for land but for construction cost.
      b) He may if such BESCOM and BBMP charges GST.
      c) YES.
      d) Yes.

      Reply
  12. Dear Sir,
    We have booked a Duplex house @20 lac on 2010 and we had paid more than that to Ben before 1st of July-2017 but still he has not completed the house but he is ready to do the registration.So in this case whether I have to pay GST or not

    Can you guide me sir it’s very important for my financial condition

    Reply
    • Dear Nitesh,
      As your payments are already done, no need to pay GST.

      Reply
  13. Dear sir,
    I purchase flate in Ahmedabad and paid 2.5lacs in before July 2017(when service tax lavied) and 10.5lacs in july 2017. In this case i am applicable in GST. If yes then how much percentage?

    Reply
    • Dear Denish,
      Yes, any payment you have done during GST period should be as per that time’s applicable GST rate.

      Reply
  14. Dear Sir, I booked a flat in Siliguri in March 2018 for Rs 46 lac where I have almost paid 75% of property value. Possession is yet to be given and my housing loan from Lic hosing finance is under Pradhanmantri awas scheme. Now builder is asking that gst will remain unchanged at 12%. Kindly help if I will be benefited under new scheme.

    Reply
  15. Dear sir,
    I have booked a under construction flat on 25th September 2017 and I paid full GST. Am I get ITC?

    Reply
  16. Dear Sir,
    I booked a villa in 2013 and paid 95% of the value. Now for taking possession, builder is requesting me to clear final dues which constitutes service charge and VAT. Please let me know if I need to pay both VAT and Service tax or GST? If GST, at what %?

    Reply
    • Dear Krishna,
      Any dues which are payable during GST regime is as per GST rate but not as per VAT or service tax.

      Reply
  17. I have boooked flat in ahmedabad @ 25L (61.67) sq mt in Feb 18 poss. in March 20 Builder demanding 12 % GST (Cash) No Recipt by the builders. Sir Please clear the aboove matter.

    Reply
      • If I not pay Gst in Cashjh they cannot give possession. I had Housing Loan Ag Flats Bank Req. Stamp(Dastavej) for Mortgage.

        Reply
        • Dear Ketan,
          I am not sure about their rules. I am saying the rules to be followed.

          Reply
  18. booked villa (OMG colours) on February 2019,where no construction started. Land registration has been done on April 2019.Construction started on may 2019.First disbursement of home loan was on may. In payment receipt ( hand written), builders paid 18% GST. when I am enquiring about the new GST, they said this project needs 18% GST even though under construction.Their GST registration is on 01/07/2017

    Reply
    • Dear Sheeba,
      Their GST registration is not an issue but it is your payment as per that you have to pay the GST.

      Reply
  19. I had registered my property on date 21 dec -2017 he project which is the collector approved project & comes in Grampanchyat zone. total value of my property is around 16 lakhs –
    what is the rate of GST payble to builder on this property.

    Reply
    • Dear Deepak,
      Just see the old rate and new rate of GST. As per that, you have to pay it.

      Reply
  20. Dear Sir
    I have booked flat in Nov’16 when there was no GST rather service tax of 3.15 % was applicable. Please let me know that if I have registered my Flat in March’19 but its final disbursement (10%) was credited to builder in April’19 by bank, in that condition whether I have to pay the GST for final disbursement to builder?

    Reply
  21. I booked a flat in Bhubaneswar in 29th April 2019. The payments were made from booking date to Feb 2019. What are the GST and service taxes applicable against the down payments made to the builder. Can I claim GST and service taxes and if yes then how.

    Reply
    • Dear NGP,
      There is no service tax but only GST. Regarding the rates, refer the above post properly.

      Reply
  22. Hello Sir,
    Is GST applicable on IDC/EDC charges paid while purchasing a Property under PMAY scheme and if yes then what would be the GST slab.
    Please confirm.
    Thanks in advance

    Reply
      • Internal / External Development Charge

        Reply
  23. Dear sir,
    I have doubt related to Vat and gst
    I purchased flat in 2015 and at the time of registration paid entered VAT.
    Now developer is demanding 12 percent gst on balance payment which is right.My question is shouldn’t I get VAT credit on remaining amount as same service can’t be taxed twice

    Reply
    • Dear Kiran,
      Your builder is asking the GST for remaining dues. Hence, where comes the twice taxation?

      Reply
  24. Dear sir
    1)Gst amount of under construction property is mention or not in registry when property is registered?
    2)How to builder pass on ITC Benifit to customer and how to show in books?

    Reply
    • Dear Chaman,
      1) There is nothing wrong if mention it or not.
      2) I am not an expert to guide the builder.

      Reply
  25. Dear Sir ,
    I have registered my flat for 28L and work order amount is 29L so it’s total 28L + 29L , the builder says that GST of 5 % is applicable on registered value and 18% on work order . Please let me know if it’s correct.

    Reply
    • Did you pay the 18% on work order? I am also facing same situation.

      Reply
  26. Hi I purchased a property on April 2017 in Mumbai for 1.11cr and paid 20% as the booking amount with VAT and service tax, When GST was implemented few months later builder sent me a new cost sheet with 12% GST and now the cost comes to 1.17cr and he says I will get the input credit after possession but no clarity on how much credit i will receive.

    Since then no payment was due as the construction work was not started and now after April 2019 he sent me a call letter asking for 10% payment with 12% GST

    I would like to know if the builder can still charge 12% from me and not 5% under new regime

    Reply
      • But he says it will be paid at the possession. and how much will be paid he has given no clarity.

        Reply
        • Dear Pratik,
          In that case, it is up to you and your builder’s trust.

          Reply
  27. Hi Sir,
    I bought an Villa in Hyderabad in a gated community.
    -> Builder took the permission in the end of 2017 and started the construction.
    -> I paid 5L of token amount in the month of April 2019 for the villa which is 80% completed. It is still Under Construction property.
    -> In the May month I paid the remaining amount and started the Loan Process.
    I guess, in my case I have to pay the GST of 5% only. Am I correct?

    Reply
  28. Hi Sir,
    Buy flat on June 2018 & paid full amount by loan. i got Subsidy. GST amount remain to pay only 60000 i pay & builder say GST i have paid, but flat still under contraction. so how much gst i have to pay. or i get benefit of new rules

    Reply
  29. sir I purchase a property in 2017jan its a plot, builder construct within 2years then GST applicable but in starting he done this deal in a fixed amount and now he said GST applicable. should I fill Gst to him or not?

    Reply
  30. Hello Sir, I had paid Rs.17,00,000/- to the developer in Oct 2013. In August 2018 Agreement for Sale was made in which developer asked me to pay Rs.76,500/- i.e. 4.5% service tax on 17Lacs and 8% GST on balance amount of flat cost. Construction started before 01, April 2019.

    1) Now in April 2019 developer is asking me to pay 8% GST on payment made in 2013. Is this legal?

    Also GST has been reduced to 5% still developer is asking for 8% GST saying developer has option to opt for old GST Rate, furthermore he used to take separate cheque for GST payment but after April 2019 he is asking for only one cheque which includes flat cost & GST.

    2) Can developer still charge 8% GST?

    3) Should I file complaint to RERA?

    Thank you.

    Reply
    • Dear Swapnil,
      1) Sadly NO.
      2) 8% if he is ready for Input Tax Credit otherwise at 5%.
      3) First, try to discuss with the developer. Then go for the next steps of complaining.

      Reply
  31. I am to book a property costing around 90 lakhs in BBSR.The completion date is October”2020.Around 60 % work has been completed by now.Builder asking me to deposit around 70% ie 65 lakhs and 12% GST over it.He has however in his demand note shared refund of benifit of Input Tax Credit of about Rs.1.5 lakhs basing on the carpet area of 1750 sft.He is now asking to deposit the cost by 20.4.19 with 12% GST as per the old rate showing the reason that he has already deducted the amount of Benefit of InputTax Credit and therefore will not give the new rate 5% of GST.Please advice.

    Reply
    • Dear Rath,
      If the builder is offering the input tax credit, then you can pay as per the old rate (But consider the valuation of which is beneficial for you).

      Reply
  32. Sir,
    I booked one Builder Flat (Studio flat) of 350 Sq Yard in 2016 in Shahberi villege, Greater noida west,and paid then 30% at that time., Now in April 2019 i am going to take possession and registry also.
    How much TAX/ GST will be applicable ??

    Reply
  33. Sir,
    I want to buy a flat costing @ 2380000 & its of 1035 Sq ft this april, in a small town in West Bengal.
    What will be my GST 1%/ 5%?
    Plz help.

    Reply
    • Dear Partha,
      It again depends on whether the flat comes udner affordable housing or not. Please check the affordable housing eligibility in detail.

      Reply
  34. Dear Sir,

    I bought one commercial property on Sep-18 of Rs. 42 Lakhs with 12% GST.
    Now CC come on 04/04/2019 and I want to sell this property to new customer.
    So my Question is.

    1. Whether New buyer need to pay GST or NOT ?
    2. Whether builder should give me GST back as he is not selling to me but Builder is selling to third person without GST.

    Reply
  35. Hi,

    Hope i am in a good place to get answer for my question. I have booked a flat by paying an token advance of 2.7L (Total Cost 27L) on Jan 19th 2019 and I got the home loan sanctioned and registration done today(Apr 3rd 2019). I will be receiving the documents in the next week from registration office and the loan amount cheque will be be provided once the documents are provided to bank.

    This is a Land owner share property and construction is almost done.

    I am YET to pay the GST amount. Land owner spoke to builder and says that I need to pay 9%(Excluding ITC) tax as per the agreement in Jan.

    Just wanted to know what is applicable in my case 5%(as per new rates) or 9% GST(as per agreement)??

    Regards,
    Subbi

    Reply
    • Dear Subbi,
      It is 5% as the project is not yet completed. For futher reading, refer the notification of PIB.

      Reply
  36. My flat cost mentioned in agreement is 2000000
    I have paid 19L and 1L is due as cc is not received. I have already paid [email protected]%.
    My question is shall I pay 5% gst on remaining 1L. If so, is builder liable to pay me remaining money which he has already taken from me?

    Reply
    • Dear Sneha,
      If your payment is after 1st April, then you have to pay 5% GST. No, the builder will not refund the already paid GST.

      Reply
  37. Hello,
    Below is the Cost breakup of my flat at Time of booking[A] and what it should be as per 5 % GST[B] effective 1 April 2019 and the Manipulated breakup due to 5% GST[C] by builder.
    ————————————————————————————————————————-
    [A]
    WITH 12 % GST AT TIME OF BOOKING (JAN 2019)
    Sq Ft Price
    Flat Cost 160 x 3732 4329120
    Carparking 200000
    Ameneties 250000
    Bescom 150000
    BWSSB 250000
    TOTAL 5179120
    GST 12% 621494.4
    Total COST 5800614.4

    ————————————————————————————————————————-
    [B]
    WITH 5 % GST (EFFECTIVE 1 APRIL 2019)
    Sq Ft Price
    Flat Cost 1160 x 3732 4329120
    Carparking 200000
    Ameneties 250000
    Bescom 150000
    BWSSB 250000
    TOTAL 5179120
    GST 5% 258956
    Total COST 5438076

    ————————————————————————————————————————-
    [C]
    BREAKUP MANIPULATED TO MATCH 12 % GST TOTAL COST
    Sq Ft Price
    Flat Cost 1160 x 4030 4674800
    Carparking 200000
    Ameneties 250000
    Bescom 150000
    BWSSB 250000
    TOTAL 5524800
    GST 5% 276240
    Total COST 5801040
    ————————————————————————————————————————-
    As i made booking of flat during the 12% rule with 3732 Rupees per sft [A] , builder should maintain the same and charge 5% reduced GST as per [B]
    But instead builder is increasing the per sft price to 4030 rupees with 5% GST [C] and keeping Total Flat Cost same as 58 Lacs
    So the 5% GST benefit is not being passed on ,he is saying he is not receiving the “Input Tax Credit” on Goods
    The project is completed 60 percent.
    Possession will be in December 2019
    please advise me on the same.

    Thanks&Regards,
    Kiran B

    Reply
    • Dear Kiran,
      It is now up to you that how much you BELIEVE on your BUILDER.

      Reply
  38. I have booked flat feb2018
    Cost 2300000
    75% paid jan2019
    Rest Will be paid april 2019
    What will be Total Gst amount & % GST

    Reply
      • Amount paid in january2019 GST % pl form

        Reply
  39. I hv booked the flat (Flat cost was 65 lakh)on 1oct,2018 including GST.At that time I hv already paid 45 lakhs(with GST @12%) during the period 1oct,18 to 31-mar-19.Now remaining 20 lakhs I need to pay after 1st april,. Apartment is under construction stage and builder don’t have Completion certificate yet. In the Sale agreement also GST rate applicable not mentioned. My question is below::

    1:For the remaining shall I pay GST5%?
    2:Can I ask builder to provide me GST receipt? Currently if he will not provide, what alternative I have to collect the receipt?
    3: Can I claim refund/adjust of 12% GST paid prior to 1st april,2019?
    4:As in the agreement of sale,GST amount considering GST rate of 12% not mentioned, how to get charged at 5%? Builder may saying me to pay rest 20 lakhs, even if I will pay after 1st april,19.

    Reply
    • Dear Subhasis,
      1) YES.
      2) Yes, you have rights to ask for a receipt. If he does not provide the same, then don’t pay the dues.
      3) NO.
      4) It is you and builder issue.

      Reply
      • Sir , i spoke to the builder , he said as construction is 95% completed, new tax rate will not be applicable.Could u suggest me on that? whether % of completion matters while deciding 5% tax applicability?

        Reply
        • Dear Subhasis,
          Sadly NO. If he is so confident of the rules, let him show the notification in this regard.

          Reply
          • Hi Sir,builder is not agreeing for 5% GST rate and saying i will hv to pay 12%.And he is not agreeing to provide me GST receipt even if he is charging 12%.Do i hv any other alternative :
            a)how to come under 5% tax zone as remaining amt am going to pay after 1st april.
            b)Worst case, suppose am making payment @12%tax rate, and builder is not providing GST receipt, what alternative i have?

            Reply
            • Dear Subhasis,
              It is clear from the builder’s intention that he collect the GST from you and not deposit it to Govt. Now it is left with you of how much you rely on such builders.

              Reply
  40. I had booked flat on March 3 2019. Yet the construction is to start. It’s in Thane. I wanted to know what’s the actual GST cut off. As the builder has claimed 8% on booking any paid in March and 5% thereafter. As some one said me the rates where 8% were applicable is now 1% wef April 2019 and 5% where there was 12%. Can u pls clarify which actual GST shall be applicable in my case.

    Reply
    • Dear Sangita,
      Yes, from April 2019, in your case the applicable GST is 1%.

      Reply
  41. Hello Sir Greetings! I have booked a under construction flat on July 2017 and the price was prepared based on 18% Tax rate which is 312784 Rs. Post GST the builder is giving ITC of 115315 Rs. Now the building is ready for registration. What effect would it make if I register in March or in the month of April. Do i get any benefit by registering in April? Please help me through this doubt.
    Thanks

    Reply
    • Dear Venkat,
      If you paid all the dues already, then it not makes any difference.

      Reply
      • Hello Sir, I’m yet to make the payment of 5 lakhs as my last due. Should I pay in the month of April. Will I get the GST deduction from 12%to 5 % for the 5 lakhs if i pay in the month of April?
        Thanks

        Reply
        • Dear Venkat,
          If you pay it after 5th, then the new rate will be applicable.

          Reply
  42. Dear Sir
    What is the meaning of Affordable housing??

    Reply
      • Thanks Sir for your reply
        Sir i have purchased flat having area 580 sq. mt. and total cost is 25 lakh. in non metro city. i have taken loan from icici bank under CLSS. is my property comming under affordable housing?
        plz guide me

        Reply
        • Dear Mangesh,
          I have shared the link. Please check your eligibility for the same.

          Reply
  43. GST is on carpet area or super built-up area? Should I pay GST for car parking and common areas also?

    Reply
    • Dear Prashant,
      It is on the total cost of the flat which you mention on the sale deed.

      Reply
  44. Dear Sir,

    I bought an under-construction flat in Feb 2019 and have paid 55 lacs (50% of the value) in the same month. Now that GST rate will be 5%, can i claim 5% for my rest of the payments after April 2019? completion of the property is June 2020.

    Reply
  45. Dear Sir, I booked my flat in May/2018, and that time I paid the 300000 as booking amount through cheque. Now the property committee has cleared banakhat docs on 12 mar 2019. And demanded 70%,(19 lacs) amount. So when I should to pay this amount to application for New gst rate..how many percentage of gst applied for that. Plz suggest..thank s

    Reply
    • Dear Vipulkumar,
      If you pay before 31st March, then it should be as per old GST and otherwise new GST.

      Reply
  46. Dear Sir,

    Thank you for clarifying the doubts for so many people. I too have some questions for you.

    1) I booked the flat in August 2014 and paid 4380200 before 31st June 2017, before 12% GST rule. For that, builder is requesting 4.5% Service tax + 1% VAT on this amount.
    2) The remaining amount of 1592800 I have paid in full. For those amount, builder is requesting for me to pay 12% GST.
    3) When I called the builder to ask if OC has been issued, his answer was no. Thus, based on my understanding, if OC is issued after April 2019, I would need to pay 5% GST.

    My question is, what is total amount of GST that builder is able to request from me based on my scenario, given that the total value of my apartment is 5973000? How do I verify that partial tax was paid (according to builder) to the government? Do the government ask for GST before OC is issued?

    Best regards,
    Rohan

    Reply
    • Dear Rohan,
      If you have already paid the dues, then that day’s GST rate will be applicable but not the 1st April 2019 GST rates.

      Reply
  47. Hi Sir,
    First of all thanks a lot for creating a blog and answering questions.

    I had booked a flat in Sep 2017 under subvention scheme (9:91). While booking flat I had paid 9% (booking amount) and GST 12% on that amount. As per sale application 91% + stamp duty and registration is due after OC. The builder has informed that OC is coming on 25th March and 12% GST will be applicable. Below are my query –

    1)- I have read that no GST will be applicable once OC is there. As mentioned above I have already paid the booking amount and have signed the application back in 2017 though real agreement (SD+registration) is pending along with 91% agreement value. Will i have to pay GST after OC in this case?
    2)- What will be GST if OC is coming in March?
    3)- As per rule he is bound to give me 15/30 working days for payment; So if will make the payment is April, what GST will be applicable (12% or 5%)?
    4)- From your blog It seems If i’ll make the payment in April, 5% GST will be applicable. And if builder will not accept this, please can you tell me whom I can complain or contact?
    5)- Also as you have mentioned numerous time that it is payment date which matters for GST, can you please provide any govt link or article where it is written.

    Thanks in advance.

    Regards!

    Reply
    • Dear Rahul,
      1) GST is not applicable if at the time of booking you have OC. However, for under construction properties booking, you have to pay the GST.
      2) It is 8%.
      3) It is 5%.
      4) NONE, as it is the obligation, promised between you and the builder. You both have to act as per the set rules.
      5) I have shared all the notification. If you still have doubt, then knock IT Dept.

      Reply
      • Thanks for the help.

        Reply
  48. Hi Basavaraj – I am in the process of booking a premier apartment and the builder is asking me to pay 10% booking amount immediately and I have issued a cheque for that same with the current date. My question is
    1. What will be the GST applicable if the check is encased post April 1st 2019 even if the date on the cheque is dated before that?

    Reply
    • Dear Sheetal,
      As per my knowledge, it is the encashed date that matters. Hence, if the builder encashed it on or after 1st April, then new GST rates will be applicable.

      Reply
  49. Hello Basunivesh,

    Firstly thank you for ur effort especially when there isnt a lack of clarity by government, your blog is really helping people.

    Can you please advise me on my situation ?

    1. Booked flat in Feb 2018.
    2.Payed 12 % on all the disbursements till date.
    3. Builder in a hurry completed brick work and is asking to disburse amoubt till brick work with 12% Gst
    4.Its just 15 more days left , should i wait ?
    5. He says there is a penality clause and he will use that if we dont pay before april 1st is this legal ?
    6.He says even if i pay in april , since construction is completed till brick work in march 12 % would apply on that is this true ?
    7. can u tell us whom to approach as his rera is still in progress in case of a dispute.

    ur few lines will help 250 families i hope u would clarify with as much detail as possible.

    please ignore the questions that u find irrelavent.

    thanks for ur time spent on this.

    Reply
    • Dear Bharath,
      If there is a penalty clause in the agreement, then the builder will definitely exercise this option. Hence, please check the documents you signed. Regarding his claim of construction and all, I hardly believe on these so-called BUILDERS.

      Reply
  50. Respected Sir, I have booked near to possession flat under CLP plan. I paid 4.00 lac initial booking amount with 8% GST. BBA done on 04th March with basic cost of 36.00 lac plus applicable tax. On the same day builder has raised demand letter of 80% with 8% GST with time limit upto 15.04.2019 for payment . Kindly note that whole structure is ready.
    Now i want to know that what GST i have to pay if i pay due amounts in April 2019 inspite that structure of building is ready and builder has raised demand in March 2019 with 8% GST.

    Reply
  51. Sir,

    I have booked a flat (under construction) in Private group housing project in April, 2018 and the disbursement of amount had started from my home loan bank to the builder based on their demand letters (construction linked plan) with 18% GST rate (Effective 12%).

    In August,2018, I have applied for CLSS interest benefit scheme (MIG-I) through my home loan bank with all document formalities and in December,2018, CLSS benefit of ?2.35 Lakhs has been credited to my home loan account and EMI amount is reduced. Now, my doubt is

    1) Whether GST rate in builder’s demand letter would be reduced or not? If yes, then what would be the GST rate applicable to me up to 31 March,2019?

    2) From 1 April, 2019 onwards, what GST rate (5% or 1%) would be the applicable to me?

    Reply
    • Dear Neha,
      1) As you applied for CLSS later, I think the 18% GST will be applicable for you.
      2) 1%.

      Reply
  52. Hello sir
    As per the law for registration “Documents that have to be mandatorily registered, should be presented within four months from the date of their execution, along with the requisite fee.”
    Can you help me understand what it means by execution here in the sentence.

    Reply
    • Dear Shraddha,
      It means any such agreement should be registered within 4 months from the date of such agreement.

      Reply
  53. Hi Basavaraj,
    I booked a flat which belonged to land owner share. I have made 45 percent payment during pre gst time, 30% payment during 12% gst time and the remaining will be paid in the days to come i.e., 5% gst time. As per my agreement papers, all payment except gst will be paid to the land owner and for gst, the builder will raise a demand.

    Till date, I haven’t got any such demand letter from the builder. So, I have the following queries

    1) How can I confirm whether gst for my flat has been paid, which I doubt. Any document which I can ask from the builder.

    2)If no gst has been paid for my flat for all the payments made till date, how do I arrive at gst applicable for my flat.

    3)If gst has been paid as per applicable rates when payment was done , then for all payments on or after April 1 will attract 5% gst?

    Best regards,
    Shekhar.

    Reply
    • Dear Shekhar,
      1) Cross check the same by asking your builder.
      2) It should be as per the rate applicable during your payment schedule.
      3) YES.

      Reply
      • Hi Basavaraj,
        On point no. 2), If no gst has been paid till date for my flat and builder confirms that as well – in that case, if a demand invoice is raised by the builder post April 1, 2019 for the due GST amount – i still have to pay gst as per payment schedule and not on the applicable gst rate from April 1, 2019.

        Best Regards,
        Shekhar.

        Reply
        • Dear Shekhar,
          Any payment you make after 1st April 2o19 will be with new GST.

          Reply
  54. Hello Sir,

    I have booked a property in April 2018. Paid 20% of the amount till now throughout the year. Agreement value 69L. Gst was not paid by me seperately.
    The project was part of a sra project. Sra building and our building are different. Registration is not yet done. But the builder is saying to complete the registration and stamp duty.
    Pls suggest what is gst rate applicable.
    And also If I register after 1st April what is the impact.

    Reply
    • Dear Shraddha,
      If you register the property by paying the dues, then the current GST rate will be applicable. However, if you do the same after 1st April 2019, then the new GST rate will be applicable.

      Reply
  55. Dear Sir,
    Recently GST rate on affordable housing is reduced from 8% to 1%, Now my query is few builder has generated demand letter in March 19 with 8% of GST. However buyer’s loan will be going to disburse in April 19.

    So which GST rate is applicable while processing payment 8% or 1% ??

    Reply
  56. Hi Sir,

    I have booked a flat and paid 20% of the amount in february.The bank loan process/registration hasn’t been done yet since I heard of gst rate cut.But when I checked with builder the word I get is since 70% of construction is already done 12% rate is applicable for that and for rest 30% the new rate and it does not matter when you are making the payment
    So could you please help out:
    1.Is the gst rate based on the completion percentage?
    2.If we get the registration done after April 1st can we get the new gst rate for our remaining 80% of amount?

    Thanks in Advance,
    Abhi

    Reply
    • Dear Abhi,
      1) GST rate based on the payment you do rather than the completion percentage.
      2) YES.

      Reply
      • Thank you sir!!

        Reply
  57. Hi Sir,

    I had booked a flat on 5th Feb 19 and have paid the booking amount+12% GST on that. I want to do the registration post 1st April and start paying the due amounts after that. My builder is ok with that but says that I have to pay 12% GST on already due amount even if I pay after 1st Apr. Is it legally correct

    Reply
    • Dear SP,
      NO. Because you are paying the dues post 1st April, you are liable to pay the GST as per new slab.

      Reply
  58. Respected Sir/Madam

    I booked a flat (total cost=47 lakhs) in January 2015 With a booking amount of 5 lakh on which service tax was paid according to that time. 9 lakh I paid in May 2018 with GST-12%.
    Now Rest amount I would pay after 1st April 2019 and would make registration of my flat done and take possession of this flat

    Note: Occupation Certificate of the property by builder from government is received in March 2019.

    My question is:

    1. What percentage of GST I would have to pay 12% or 5%(currently announced) on the rest amount which I would pay after 1st April 2019.

    2. If I would pay 5% then what will happen to that GST on 9 lakh that I had already given to the builder in May 2018. How this scenario will be dealt. Would he compensate it with the rest GST that is remaining to be paid.

    I am in mental pressure from the builder side and as well as from my financial side. I have taken a loan that I have to disburse to take this flat.

    Please solve my query. Please!!!

    Reply
    • Dear Dharmendra,
      1) 5%.
      2) That is a different story as you paid it prior to 1st April.

      Reply
      • But sir he is making constant pressure to pay it before. Although he has not started giving possession officially. He has not given any notice period regarding Registration and possession to me. Just saying possession is ready although he acquired the Occupation Certificate from government this month. According to agreement I have paid the required amount that had to give before possession. So I can take the possession after April 2019 and pay rest amount with GST 5%, right???

        Reply
        • Dear Dharmender,
          It is up to you and the builder when you go for payment and registration. Because 99.99% builders always claim one lies or another. Hard to believe them.

          Reply
  59. Hello,
    I Booked a flat in Sep 2017, and the flat cost is 54 lacs so far 90% of the amount released and the flat is still under construction and GST is not paid, registration also not done,Could you please advise if i pay GST after 1st April 2019 how much GST i need to pay 5% or 12% please advise.

    Reply
    • Dear Kiran,
      How come the builder not collected the GST as and when you paid the installments?

      Reply
      • Yes sir..i checked in Last month no GST paid…they are asking me to pay GST and go for registration…please advise in this case

        Reply
        • Dear Kiran,
          It is up to you and the builder comfort that whether you want to go for registration before March or after March.

          Reply
          • Hi Basavaraj,

            if i go After march do i need to pay 5% GST or 12%

            Reply
  60. hi Basavaraj,

    I am new at real estate.I have booked flat in oct 2018 with booking amount of 1 lakh.Flat Agreement value is 4256000 and I have paid stamp duty and registration fees last week.Builder is asking to get the registration done by 8 th march so that he can demand for money to bank from where I have taken home loan.The amount is around 34 lakh for the work done as per payment schedule.
    I would like to confirm that
    1. If we pay part amount before 1st april will we have to pay 8 percent gst.
    2. Is it that, this rule is applicable to amount paid after 1st April
    3.How GST is paid?Do we have to pay as and when payment is done or we can pay anytime before possession?

    Thanks,
    Trupti

    Reply
    • Dear Trupti,
      1) Yes.
      2) NO.
      3) You have to pay as and when you do the payment of installments.

      Reply
  61. Hello Sir,

    I have done registration of my house on 16 th feb 2019. On 24 th feb we got the news of GST for affordable housing is slashed to 1%.

    Our home loan is not yet disbursed. But now our builder is asking to pay the amount. 70% of the Construction is done for our property. He is asking to pay old GST rate for 70% of the price. But we are thinking to pay the amount after April 1 st. So that we can pay only 1%.

    But the builder is forcing us to pay the amount.

    1) Can we wait till April 1st 2019 without disbursement of loan.

    2)What can we do now if the builder is forcing us to pay the amount now.

    Please help in this case.

    Thank you.

    Reply
    • Dear Veera,
      Whether your builder will wait up to 1st April? If no, then you have no other choice to pay.

      Reply
  62. Hello Sir,
    I booked a property and registration was done in february 2019 i have paid 10% as base amount and 6% gst on the same. i want to pay remaining amount in april to pay only 1% gst but builder saying to pay in march itself and pay 6%.
    He also said i have to pay 6% in april also since registration was done in february. Is this correct? I think this should not be the case

    Reply
    • Dear Aishwarya,
      Your registration date does not matter. But on which day you pay to the builder is most important. If you pay the installment after 1st April, then you have to pay the GST as per new slab. It seems builder is desperate for the fund. How much you rely on such builders is left with you.

      Reply
  63. Sir,

    My total flat cost is 54 Lakhs. 27L on sale DD and 27L on work order . builder is saying even after April 1st the gst on work order remian 18%.

    Also, even if we make an agreement of 27L on sale DD after april, then the gst will be 12% becuaee there will be a chexk box for ITC.

    Want to know about work order and how and when builders actually get Itc?

    Reply
    • Dear Uday,
      It seems your builder created his OWN GST rate. How much you believe on such builders is left with you.

      Reply
  64. Dear Sir,
    Please suggest me

    1-What was the maximum size in affordable flat area at non metro before this 24th FEB 2019 announcement as 90 sqm and 45 lakh in non metro FROM APRIL 2019 and what was gst RATE before?

    2- What was the definition Changed as per Area And amount for GST after 25th Jan, 2018?

    3- I was booked a flat in 44 lakh and 810 carpet area in non metro agreement value in 30th jan. 2018 and Builder is charging me 12% GST from there. Is 810 carpet area including parking space was not in the affordable housing definition till date?

    4- When visited his office yesterday then he told me only 600SQM area was in the affordable housing zone and that was only qualified 8% GST from Jan. 2018 not mine because my carpet area was 810 sqm . is it true?

    Please show some lights on the issues.

    Thanks.

    Reply
  65. Sir,
    Do we have any notification issued by gov of india, regarding scenario where we did agreement in 2018, and from agreement day to 1apr2019 , whatever amount we paid ,for that period of time we need to pay gst with 8% and if builder taking dissbursment for rest amount after 1apr19, we need to pay tax only 1 percent on that remaining amount what he disbursed, because builder is not accepting this as he is claiming that he already paid full gst when i did aggrement, i am not sure how its possible, if i didnt pay amount of gst on full aggrement value ( i only paid gst for that value which he disbursed as per completion of work) how can he paid full gst amount , if we have any notification can u please send link, so that we can stand with this. Thanks in advance

    Reply
    • Dear Rahul,
      Whether the builder paid the full GST or not is itself a doubtful. How can he pay the GST on future payments which he not yet received? It is nothing but their business of LIES. I am not sure how much you trust them.

      Reply
      • Hello sir , same question i asked to them that how they paid full GST if i did not paid to them, but just to avoid more disputes with them , i want to show them notification from Government of India , so do we have notification which can show that, whatever amount builder going to disbursed after 1april2019 , i need to pay only 1 Percent GST on that .
        Thanks in Advance

        Reply
        • Dear Rahul,
          I have already shared the notification link in the above post. Refer the same.

          Reply
          • HI Sir, Really appreciating your fast reply 🙂
            I checked that notification , in that they have not mentioned that if agreement is done before 1-april-2019 they are also eligible for that GST change scheme for all remaining amount which will be disbursed after 1-april-19, due to this builder is denying and saying that rate applicable only to those people who will do agreement after 1-april-2019 , can you please help with this as well , Thanks a lot in advance

            Reply
            • Dear Rahul,
              As per me, the date of payment matters than the date of registration. Your builder might have changed the TONE (of your’s) if the GST rate increased.

              Reply
  66. Sir,
    I had book the under construction 2 bhk flat in april 2017 at Nasik, Maharashtra and registration is completed Sep 2018 with [email protected]% + Stamp [email protected]% + Registration [email protected]%. and completion will be in Aug 2019 and sale deed of apartment is pending.

    Bulider has taken all amount i.e. down payment (Other than Loan amount) + [email protected]% + Stamp [email protected]% + Registration [email protected]%.

    1. What will be GST applicable as per GST meeting?
    2. GST is to paid before registration or at the time of Sale deed of apartment?
    3. Whether the builder will return my extra GST? what document should be asked for GST?

    Regards,
    Gunavant Patil
    8884185395

    Reply
    • Dear Gunavant,
      If registration is already done and all the payments are already paid, then why now the GST issue?

      Reply
      • Sir,
        I can ask for refund/readjust if the GST will be 5 % applicable and Builder has not given any receipt of [email protected]%.

        Reply
        • Dear Guruvant,
          If your payments are after 1st April 2019, then you have to pay 5% GST. Regarding the receipt, it is the duty of the builder to issue a receipt.

          Reply
          • My total HL is Rs. 22.50 lakhs. Out of that Rs. 12 Lakh is disbursed.
            For remaining payment i.e. Rs. 10.50 Lakh GST will be 5% ? which i have to pay after April 2019. please confirm

            Reply
  67. Hi Sir,

    I booked a property in Nashik Area at 14.5 lakhs of 667 sq feet and paid 2 lakhs as down payment in August 2017, the loan process was completed in a three months span and registered the property in Jan 2018 by paying the stamp duty, the property is still under construction and I have been paying the Pre EMI since last year, I am assuming i may receive the completion certificate by Mid April 2019 but not sure how much GST will be charged if I receive the completion certificate after April 2019 will it be 1% (under affordable housing scheme),5%(Revised GST) or 12% itself.

    Reply
    • Dear Prashant,
      It will be as per the new rates which I explained in above post.

      Reply
  68. Sir,
    I have booked flat with amount 2 Lakhs in July 2017. at that time GST rate was 12 %. then I did registration in feb 2018 and paid 16 lakhs. that time GST rate for affordable housing was 8%. remaining amount i will pay after 1april 2019 with 1% GST. is it correct, because builder asking me that you have to pay all amount with 12% GST. is it correct??

    Reply
    • Dear Mangesh,
      Your builder misguiding you. You have to pay 1% GST.

      Reply
  69. Sir,
    I have booked flat with amount 2 Lakhs in July 2017. at that time GST rate was 12 %. then I did registration in feb 2018 and paid 16 lakhs. that time GST rate for affordable housing was 8%. remaining amount i will pay after 1april 2019 with 1% GST. is it correct, because builder asking me that you have to pay all amount with 12%. is it correct??

    Reply
  70. Hi,

    Good Morning Sir,

    I had purchased an under construction flat in 2016. As it had a 21-floor building, I had to pay the amount on a slab basis.

    So after the booking amount and first 4 slabs, I was charged 4.5% Service Tax and 1% VAT as it was a pre-GST era.

    After GST got implemented, I was paying 12% GST up to 16th slab till date. As the agreement value is 42 lakhs for my flat as per the new rules I fall under an affordable housing project and should only be charged 1% GST on any amount I pay to the builder going forward.

    The other point is all the slabs are already completed but I haven’t paid any amount after completion of slab 16. So the builder is asking for the remaining amount along with the GST.

    So have following questions for you

    1) Should I be charged 1% or 5% for the remaining slab amount by the builder?

    2) Will the builder refund the GST amount he had already paid to the government or will government refund the additional GST amount it charged before April 2019.

    3)What should be next action I should in case the builder is not ready to lower down the GST for the remaining slab amount?

    Reply
    • Dear Azharudin,
      1) 1% if you are eligible under affordable housing scheme and payments are after 1st April 2019.
      2) NO.
      3) You can approach the IT Cell by complaining against the builder.

      Reply
      • Thank you, Sir…. One more thing the GST amount I paid was always sent to the Builders Account. So we never had the clarity that what actual gst the builder was paying to the govt on my behalf so do I have the right to ask the builder if he can provide me the earlier transactions of the gst amount he was paying?

        Reply
  71. Dear sir

    I m registered flat before 01 Jul 2017 and remain payment paid after 01 Jul 2017,I m taking Passion on 14 Feb 19. Now builder asked me pay GST @9%.

    Reply
    • Dear Nilesh,
      You have to pay the GST as per current rate i.e. @ 8%.

      Reply
  72. Hello Sir,
    I have booked a under construction property in 2015 and did a slab wise to builder for 97% and paid applicable service tax and GST as on when the demand was raised.

    On 16th Feb got a mail from builder that they have receiving the OC for my tower and they raised a demand on 23 Feb 2019 of balance outstanding amount.

    In this demand, builder has charged me 4.5% service tax on the balance agreement amount and 18% GST on socierty and other charges as below
    1. Club Membership
    2. Electricity and water connection charges
    3. Legal Charges
    4. Property Tax and Water charges (proportionate charges)
    5. Society formation & reg charges
    7. Society maintenance

    My query is,
    1. If the demand is raised on 23 Feb 2019 is it legal and viable for builder to charge service tax ?
    2. Does the government dues and deposits attract GST ? like Electricity and water connection charges.
    3. What % does the GST should be charged for the other charges mentioned above? for point no 1, 3, 4, 5 and 7.

    Thanks.
    Vaibhav

    Reply
    • Dear Vaibhav,
      1) Builder can’t ask for service tax but can for GST.
      2) It depends on the service. But as per my knowledge, deposit not attract any GST.
      3) The rate will not be same. Hence, you have to cross check the applicable rates with GST portal.

      Reply
  73. Sir, I have booked a flat amounting to Rs.63 lakhs (including GST of Rs.695009 and Registaration cost of Rs.279648/-) and the said flat is under construction and I have paid an booking advance of one lakh only. What will be the GST amount I have to pay

    Reply
  74. Dear sir, I have booked an under construction flat (registration not yet done). The builder has issued demand letter for 60% amount on 22 Feb. I have not yet paid. Should I wait till 1st April 2019 to save on GST? Builder saying that demand notice has already been sent, hence paying after 1st April will not help save the GST with reduced rates and asking for payment with 18% GST even if paid after 1st April 2019. Please help on how I can save on the GST.

    Reply
    • Dear Shishir,
      It is up to the builder and you. If he is ready to wait till April, then you can.

      Reply
      • Thanks for answer. Will the applicable rate of GST be effective based on the demand notice date (as claimed by the builder) or the actual payment date?

        Reply
        • Dear Shishir,
          As per me, it is based on the actual payment. Because demand notice raised by the builder but not by the Government.

          Reply
  75. Sir.
    I have booked a 3-BHK flat from Lucknow Development Authority and paid 5% amount on Jan 10 as Registration amount. The Allotment Letter reflects 12% GST. I took a bank loan and Cost of Flat was to be disbursed on 25 Feb. 2019. I have not paid any GST until now because LDA fellows did not clarify it. I thought they will demand it at the time of registry of property. The property is at the verge of completion (under construction). Since a new rate of 5% GST will come into effect from 1 April 2019, I have 1 query:

    1. Will the applicable GST would be applied for the buyers who booked flat before 1 april amd made full/part of payment.

    2. If the cost of flat is disbursed before 1 april 2019, what would be the GST (12% OR 5%) applicable at the time of Registry of property. I expect the Registry after April 2019.

    3. If the cost of flat is disbursed after 1 april 2019, what would be the GST (12% OR 5%) applicable at the time of Registry of property. I expect the Registry after April 2019.

    Reply
    • Dear Sanjeev,
      1) It is not your booked date but the payment date that matters. As per the applicable rate of GST on that day of payment you have to pay the GST.
      2) Any dues which you pay after 1st April 2019 will be at 5% GST.

      Reply
  76. Sir,I am going to construct a home in my own land at a cost of Rs.Fifty lakhs engaging a contractor.Shall I pay GST to the Contracor.

    Reply
    • Dear Thangarasu,
      For his service of construction you have to pay the tax but in that case the above said GST rates not apply.

      Reply
  77. Sir.
    I have purchased a flat and made the complete payment by Jan. 2019. I have not paid any GST until now because the builder told me that when we do the registry OF THE PROPERTY that time he will know how much GST I have to pay. Right now the gst is 12%. If suppose gst is reduced to 5% what will i have to pay 12 or 5%.

    Reply
  78. I am Bhavik,
    In last year, i have bought underconstruction property in gujarat.
    Basic rate : 21 L.
    I have give 3 L cheque payment.and 18 L loan sanctioned.
    After 1 month, builder will give possession,
    Dastavej/circle rate value will be 6.5 L.

    Now builder want to get 6% GST on 21 L and 5.9 % Stamp duty on 6.5 L circle rate.

    Please suggest us.

    Reply
    • Dear Bhavik,
      If GST is calculated on Rs.21 lakh then how can the stamp duty on Rs.6.5 lakh? If the registered value in sale deed is Rs.6.5 lakh, then you have to pay GST on the registered value ONLY.

      Reply
  79. Sir ,

    We booked a under construction villa ( 95 % completed) on Jan 6 2019 Paid 10 % percent building cost by Jan 18 2019 (with 12 % gst)
    Builder raised a demand for remaining 95 % and due for that payment is Feb 19 2019.

    Sale Agreement and constrution agreement is signed and loan is sanctioned under PMAY CLSS ( MIG 1 ) which is 8 % ( with itc )

    1) Will my initital payment with 12 % gst gets reversed to 8 % and refund the excess amount paid and also reflects in future payments ( OR )
    8 % percent reversal takes place after 100 % settlement ( with 12 % gst ) quoted value and excess amount paid will be refunded

    NOTE : Till now sale deed and const agreement is not registered.

    Possession by March 2019

    In case if both 95 percent of the building cost (loan + self fund ) is paid by feb 19 2019 and later in case if the government reduces the gst to 3% (without itc )

    1.Will the builder raise the construction cost ( i guess they wont and its illegal )

    2. Suppose if the effective gst rates under clss scheme is 3 % from March 1 2019, this effective rate applies to total base cost of the project or only for the final stage of construction cost .?

    Reply
    • Dear Nandini,
      For whatever GST you paid as per that day’s GST rate, you will not get refund (whether it is 12%, 8% or 5%). However, only future payments are as per the applicable GST rates.
      1) It is up to him and they play such dramas.
      2) It is only for the final payment as you already paid the earlier payments as per the schedule.

      Reply
  80. Sir,
    I have booked an underconstruction flat for Rs.1.20 crores recently and have paid 10% booking amount. Have still not done the agreement. The pricing sheet/allotment letter says 12% GST. Now if the govt reduces the GST to say 5%, how much GST will be charged to me?

    Reply
      • Hello Sir,
        Just read in the news that govt is looking to reduce the GST to 5% in the next meet. So wanted to know what rate will be applicable on the balance payments?

        Reply
        • Dear Karande,
          If they reduce so, then yes the balance payment should be at the reduced GST rate.

          Reply
  81. Dear Sir,
    I have booked an under construction flat in March 2018 at Kanju West, Mumbai with a reputed builder for a cost of around 1.7 cr. Till now I have paid almost 65% of flat cost since construction is almost done. I have been charged GST at 18%, when asked for clarification, (as in cost sheet it was mentioned as 12%) builder replied that they have calculated 18% GST @ the amount less land cost adjustment. The 1/3 land cost has been adjusted from demand and 18% has been charged on the balance amount.
    My question is whether this process is correct?

    Reply
    • Dear Smita,
      Your’s is the biggest example of how they themselves fill in buyers head that they are the so-called REPUTED BUILDERS. When it comes to ethics and promises, all builders are SAME. Yes, whatever they are doing is unethical.

      Reply
      • Thank you so much for reverting back Sir. Further I would like to know, can I ask builder to provide tax payment details?? Or can I get a refund of whatever additional GST I have paid ? And whether legal interference is required?

        Thanks and regards
        Smita

        Reply
        • Dear Smita,
          You have all rights to for tax payment details. Yes, you can get the refund if you already paid more than the actual GST.

          Reply
  82. Dear Sir,
    I am Mitesh from Indore (MP).
    I bought under construction property in August 2017 with payment terms Basic ++.
    Now property is ready and he want to pay tax and do the registry.
    He is charging me 12% GST.
    On this property i also get PMAY benefit.

    Now my question is –
    1. GST rate on my property 12% is correct ?
    2. Did I get any Input crredit under GST which reduce my GST rate ?
    3. Since i avail benefit of PMAY so GST may be 8% ?

    Please comment.

    Best Regards
    Mitesh Vyas

    Reply
  83. Sir,
    I have purchased one flat under Construction Linked Plan (CLP) scheme and the apartment is under construction and builder has promised to handover the flat in Jan,2020. I have taken a home loan of ?30Lakhs from bank and based on the demand letter from builder, I am disbursing the same with 12%GST rate (excluding 1/3rd value of undivided land) from my home loan account. Almost ?15Lakhs has been disbursed to builder till date. CLSS/PMAY subsidy from govt. has sanctioned to me in the last month i.e. December,2018 and I got the approved letter from my bank too. Now, my question is “For CLSS/PMAY approved home/Flat, GST rate shall be reduced to @8% (excluding 1/3rd value of undivided land) from @12% (excluding 1/3rd value of undivided land) or not ?
    If yes, then “Shall I ask my builder to refund/return the difference of additional GST rate that I already paid @12% for disbursed amount of ?15Lakhs ?
    Please clarify my doubt.

    Reply
      • Thanks Sir….
        One more doubt that I have booked my flat in April, 2018 (PMAY approved on 18-12-2018) and around 15Lakhs I have disbursed to builder with GST @12% with input tax credit.
        Now
        1) whether I can claim the difference of 4% (GST) from the builder as refund or not ?
        2) All future demands from builder will have 8%GST with input tax credit ?

        Reply
          • Sir,
            I have asked my builder to revise their demand letter with revised GST rate i.e. 8% (as my flat was approved under CLSS and letter from bank is also received) but he is reluctant to accept it and in writing they have replied me that “we would like to inform you that apartment booked by and allotted to you in our group housing residential project “XYZ” is not a affordable housing project and does not come under government scheme (PMAY). So GST rate would be the same as it was in demand letter.”

            So sir, my doubt is
            1) Whether all projects are not come under PMAY/CLSS scheme?
            2) Whatever my builder has replied me, is right or wrong, how do I know and if builder’s reply is wrong, so where I can file a complaint against them?

            Please reply Sir.

            Reply
            • Dear Saurabh,
              You inform them that PMAY scheme not ONLY depends on the project but also based on the buyer eligibility. Hence, how can they decide on their own?

              Reply
      • Hi sir, but I’m reading many articles describing that the project must be under CLSS scheme to get 8% GST instead of 12%, not my home loan. I’m confused.
        If my home loan approved under CLSS, then can I claim builder to give 8% GST only? If yes, how to claim? You know law is not by just telling by word, some things need in paper.

        Reply
        • Dear Souvik,
          As per my knowledge CLSS applies to individual not to the building.

          Reply
  84. Hello Sir,

    This is Divya, I purchased a flat on April-2018 in panchayat Area Hyderabad at 38,00,000 lacs including amenities. I went to home loan for 28,00,000lcs in that 13,50,000 is property value as per government value and remaining 24,50,000 work-order basis 2 cheque’s got released from bank with builders name. The remaining amount i paid by cash(8,00,000) & cheque(2,00,000) to builder. Now my builder is asking GST 12% on property cost(13,50,000) as per govt and 18% on work order(24,50,000)+(2,00,000). Could you please guide me how much amount needs to pay for GST as per govt rule..

    Thanks in Advance

    Reply
      • Thanks for your reply, My builder is demanding 18% on work order cheque. Can we have any notice to show my builder it is 12%.

        Reply
        • Dear Divya,
          It is shared in the above post. However, his demand is different, then let him show the tax notification.

          Reply
  85. Sir , I am a builder. I am selling under construction property in row houses. Some are 600 sq feet some are 2000 sq feet
    Please tell me on which house my effective rate be 12 % and on which 8 %. Does I or my client have to make any type of registration or procedure to make it 8%, as you have told somewhere thath if covered in clss.

    Reply
    • Dear Atul,
      Sadly I am not an expert to guide the procedural matter of builder.

      Reply
  86. Sir,
    With due regards I would like to seek clarifications on few points towards the under-construction flat (1675 sft) situated in the the 4th floor of the 5 floor of the building purchased by me in Hyderabad.
    1. The cost of the flat after bargaining is 68.5 lakhs
    2. Initial booking/agreement (semi finished) amt. paid is 16.5 lakhs in the month of May ’18
    3. Possession of the flat – March ’19
    4. Balance amount to be paid to the building is 58 lakhs.
    5. Rest of the amt. I am seeking Loan. I am a Govt. employee and my wife is working for SBI as scale – II officer.

    Now the builder is insisting that he going to quote the rate of the flat at a lower rate during the RERA Reg. and the same would be reflected in the sale documents. With my savings I could manage only 16.5 lakhs and paid the same as initial booking amount. My doubt is :

    1. Will I be in a position to procure 58 lakhs + applicable GST amt + Registration Charges as loan amount if the Builder quotes lesser amount in the documents.
    2. What will the GST amount for the flat ?
    3. What would be the registration amunt.

    Reply
    • Dear Vijay,
      1) How can I say this? It depends on your affordability.
      2) It will be on the Sale Value which you mention in sale deed.
      3) Consult the concerned sub-registrar office.

      Reply
  87. Dear sir,
    I already booked a flat before July 17. But our registration also done before July 17 .but he already raised the invoice of 70 lakhs (flat cost) before July 17. Now he demanding for gst

    Reply
    • Dear Manoj,
      How can he generate the invoice for the transaction which was prior to GST regime? It is illegal.

      Reply
  88. I bought an under construction house property for 40 lakh which is his stamp value also. My question is

    1. whether GST is payable on 40 lakh or deemed to inclusive of GST

    2. stamp duty on 40 lakh or 40 lakh + gst amount.

    3. finally what amount in registry be written 40 lakh or 43.2

    4. Will I get the invoice also

    Reply
    • Dear Atul,
      1) It is on Rs.40 lakh.
      2) Stamp duty on Rs.40 lakh.
      3) It is Rs.40 lakh.
      4) For GST, Yes your builder has to give you the invoice.

      Reply
      • Thanks a lot sir

        Reply
  89. Dear Sir,

    I have bought the under construction property in Mumbai in Aug 2014. Builder had promised to give possession on Dec 2015 but he delayed by 2.5 years and then come GST.

    Can builder charge me 12% GST based on amount paid after July 2017?

    Rohan

    Reply
    • Dear Rohan,
      Any amount payable after GST period will attract the GST.

      Reply
  90. I have booked the flat I Noida Ext in 2010 and paid 55% of total rate till 2015. Now the flat is ready but no clearness to allot the flat. Now he has asked for remaining amount. Also some other charges of 283000. I paid him the total amount Now he is asking for GST on remaining amount and on other charges. In Noida so many builders are charging just 6 to 8% of GST but over builder is asking for 12%. Our flat is I the name of La Residence. Firstly in was Amrapali La Resdience.
    Please advise me

    Reply
    • Dear Mrs.Malhotra,
      Let him show the rules if not, then knock the legal door.

      Reply
  91. Dear Basavaraj,
    I have bought a under construction flat in Jun-18 & the builder has charged me 12% of GST on basic price which is correct.
    However, if we consider the ITC part, builder is going to get ITC benefits on full GST but they are not transparant enough to share the information how much ITC benefit is being passed to me & saying that they have already reduced the price by adjusting the ITC benefits in total cost. But, I can clearly see that builder has increased the price of same property a number of times after Jul-17 but still saying that they have made an adjustment to pass on ITC benefits.
    Please advise, how can I varify that the builder is fair in passing the GST ITC tax benefits as the amount which builder is charging is more than 8L which is more than enough to just ignore for such hard earned money?
    Also, please suggest if there is any legal provision to get the benefits at the time of final payment when construction is completed as till that time builder may have the actual ITC amount to pass on to the buyer.

    Reply
    • Dear Rohit,
      If your builder is so open, then let him show the details of ITC. There are no such legal provisions sadly.

      Reply
  92. Good afternoon Sir,
    I booked a flat in 5 storied apartment in Hyderabad in this month, i.e., october/2018. Builder completed the apartment and got occupation certificate from GHMC/ Hyderabad in the month of May, 2018 before my booking. But builder is asking GST 12% on the sale deed. As this apartment got Occupation certificate before my booking the flat, is GST applicable? Please clarify.

    Reply
  93. I had book a flat in 2010 and total cost was 3800000 and other charges200000. And I have paid 55% of the total amount till 2015 with ST and Vat. Now he is hand over the flat and I paid him now 1800000 not the GST. Now I want to know on remaking part what GST I have pay. In Noida I have comfarmed so they said 6% but builder is asking 12%. Will you kindly help me out as I am a old lady and alone

    Reply
  94. Hello sir,

    I have booked a flat with 58lacs agreement cost and 12% GST on it…now after a month at the time of registration, builder is saying that as the size of the flat is less than 60sq mtr, GST applicable is 8% and not 12%..
    But he has also increased the agreement cost by that same margin saying your total package will be the same…
    Is this legal?
    I feel if the GST is reduced then it should be passed on to customer…how can they just increase the agreement cost?
    Please guide..

    Reply
    • Dear Nikhil,
      It is the game these builders do. If you want then can fight by taking legal help.

      Reply
  95. Dear Basavaraj Sir, in 2015, I booked an under construction flat at Rs.65lacs price All Inclusive. I paid Rs.57lacs before GST implementation 1.7.2017 and no Service Tax was levied by Builder. Builder’s earlier demand letters had a common remarks about 14.5% Service Tax inclu SBC but tax was never applied on us as the price is all inclusive. Now Builder is asking for possession and is charging 12% GST on balance Rs.8lacs. Sir, whether GST is applicable on flat price which is all inclusive. Further when 12%GST rate is lesser than 14.5%Service Tax, their is no tax burden on builder. Please advise.

    Reply
    • Dear Puja,
      Earlier he might compensate the tax just to lure customers. Now he may be reversing. Check the agreement copy and accordingly take the legal opinion also.

      Reply
  96. Hi, could you tell me if I have to pay GST, if I am looking to buy a resale property, which is still under construction? There is a lot of confusion on this regard. As I will be buying from a person who has already purchased a flat from the builder before GST, and not from the builder of the under construction project. I’ll appreciate your help!

    Reply
    • Dear Avian,
      If the property is still under construction status, then you have to pay the GST.

      Reply
  97. Sir I booked flat in karjat (builup area 1039 sq feet & basic rate Rs 2300 per sq feet & devlopment charges Rs 350 per sq feet) but builder charged GST 12% on basic + devlopment charge
    I will pay 12% or 8%GST on basic value or basic + devlopment charge value
    Please guide me

    Reply
    • Dear Revannath,
      If you fall under CLSS, then 8% otherwise 12%.

      Reply
  98. dear Mr. Basavraj,
    I have a similar query like Mr. Avik. I have paid booking amount Rs 5 lacs pre GST and rest of the amount post GST. How much percentage GST is applicable for me?

    Reply
    • Dear Shubhadeep,
      You have to pay the GST as I mentioned in above post.

      Reply
  99. Dear Sir,
    I have booked a flat and paid 20% as earnest money. Now the builder is asking for GST at 12% and the building is under construction. I have opted for the construction linked plan. Is the builder legally correct to ask for the gst on the earnest money or should I pay it lump sum on possession of the flat?

    Reply
  100. Hi sir ,

    I had given 50 % as advance for booking of flat at very early stage under one of the project in 2015 but builder could not start the project , i had signed moe at the time of payment of 50 % of the amount , now since builder could not complete his commitment he has offered me a ready to
    move in flat , however asking for GST on 50 % of the amount paid earlier since same is paid for booking of unreconstructed property which he is going to adjust for new ready to move in flat allotted to me in may 2018.

    the new flat is allotted in may 2018 after builder got OC for the new project in which he is offering me alternative flat as per MOE terms

    my point is am i supposed to pay any GST , I had not paid any service tax on advance given to builder earlier and will be paying balance 50 % now through loan.

    Reply
    • Dear Vaishali,
      It is completely left with you and builder. Because it is the adjustment you and builder agreed.

      Reply
  101. My builder 8s selling a 1076sq ft flare at 2900/- rate. Also he is taking development charges of 448/- per sq ft. He is charging 12% GST on Basic + Development charge. My question “Is GST applicable in development charge or not”. Some source told me that GST is applicable to Basic Cost only. Kindly suggest. Also give some links if it not applicable, so that I can show it to the builder.

    Regards
    Pratik

    Reply
    • Dear Pratik,
      As per my knowledge, it is on basic cost. If he is not agreeing, then let him show the proof.

      Reply
      • Thanks a ton sir for your guidance. Your guidance is boon for the new buyer.

        One more query sir, ” I am eligible for PMAY scheme & under this scheme I have to pay 8% GST on the sale deed value. However the builder is charging 12% GST, what should I do? Is there any authentic data available to restrict him.

        Reply
        • Dear Pratik,
          You can show the above shared Govt Notification for the same.

          Reply
  102. Purchased a flat post GST. Occupancy certificate applied by the builder during Service Tax regime. He is telling us that it is still under process and shall be available at a date post GST. Amount paid in Full till date and the builder is pressurizing to pay GST @12% immediately as he had to incurr interest while filing GST returns as he is not showin the GST amount as received from me.

    Reply
    • Dear PK,
      If the property is booked post GST, then you have to pay the GST.

      Reply
  103. i have booked under construction flat in mumbai & paid gst & stampduty one month before. now if i want to buy another flat in same under construction building of bigger carpet area, then whether my earlier paid gst,stampduty will be adjust while making payment of new flat?

    Reply
  104. I am from Tezpur, Assam. I have a land with an area of 5722 sq.ft. I have a plan to build a G+5 or G+6 structure on the same land and sale the apartments. Now, I want to know how and where should I start from. What are the legal procedures and how to get into agreements with customers. Please suggest. Thank you.

    Reply
    • Dear Asif,
      Please be in touch with an expert lawyer of your area.

      Reply
  105. i have purchased property under construction & possession will be march 202. f;lat cost is rs. 75,00,000/- for 650 sq. feet carpet area. how gst slab is applicable for my flat

    Reply
  106. I am eligible for 8 percent GST in an underconstruction project as per Govt norms.Despite submitting all documents from bank if developer does not provide 8 percent GST where should I complain?should i go to court or i can raise it in consumer forum or any other authority.Please advise.I am from Kolkata.
    Please let me also know what will be applicable rate of GST in case of installment payment of car parking in my case.

    Reply
      • pls let me know gst on car parking in my case?

        Reply
        • Dear Esha,
          As per rule, they (builder) can’t charge you additionally for car parking.

          Reply
  107. Dear Basav,
    I have booked an apartment in a under construction residential complex and availed loan from SBI and also eligible for PMAY scheme which is availed.

    Subsequently, in March 2018, I separately booked one open car parking at the same complex at an consideration of Rs.4,00,000/- which to be paid by my own savings. My question is on possesion what should be rate of GST I have to pay without availing any input tax credit by the developer. Whether it is 18% or 12% or 8%.

    Reply
  108. Hi,
    I have booked a flat under construction and builder asking for 10% GST on total sale value. I know actual GST is 12%. Is this reduction because of input credit he gets? how much do the builders get as input credit and how much they can benefit to buyers?
    2) do we need to pay GST on the builders name?

    Reply
    • Dear Sri,
      It may be due to input credit or he may be giving you a discount while selling by paying the same from his own pocket. Better you discuss this with builder itself.

      Reply
  109. Hi Sir, its looking your blog is one of the best on advice. Please help me on 4 small queries..

    1) I’m going to purchase a flat under construction. No CLSS I applied till now.
    GST charge will be 12% I know. It costs 2700/sqft. Its cover area is 454sqft. But if builder shows the cost as 2200/sqft, then the flat value will be decreased. And I have to pay less GST. But how should I pay the rest amount to builder? I don’t want any cash transaction. Moreover should I go with this deal or not?

    2) Here if he shows the rate as usual like 2700/sqft, then i have to pay 12% on 2700×454. Right?

    3) So I’m reading in your comments, you are telling GST on sale deed price, what is sale deed then?

    4) If they don’t have to pass input credit where they can claim that from govt,, then is the gst rule not a stupid thing where buyer has to depend on sellers kindness??

    Reply
    • Dear Souvik,
      1) Builder usually lure you by forcing for lesser value of sale deed. You feel you have to pay less tax. But they do it for their own purpose of reducing capital gain. Hence, never allow such transactions.
      2) YES.
      3) Sale deed is the final document which makes builder to transfer the asset to you.
      4) GST is still at trial and error mode.

      Reply
  110. Hi ,
    I have a question regarding GST.
    GST for under construction flat is 12%. After completion / handover/possession if I want to see the apt will I be at loss as no GST is application. Will I have to add 12% to total price. How this usually goes. Please suggest

    Reply
    • Dear KP,
      I am not sure what you are asking. Can you elaborate more?

      Reply
  111. Sir, I have booked a 03 bedroom flat at Dhanbad (Jharkhand) and as per agreement Flat should completed by 30/06/2017 but builder made delay and now asking the remaining payment with 12% G.S.T..
    I have also taken loan from SBI and SBI was not ready to release the final amount without analyzing the completion of apartment(Flat) .
    Delay in completion of flat is not my fault, they why builder is asking for G.S.T.. If work is completed in time such situation will not be arised. Sir, Please just tell me, is it right or otherwise.

    Reply
    • Dear Rajesh,
      You have to pay GST only to the payment which you have to pay during GST regime. If you already paid the same, then no need to pay.

      Reply
      • Sir, My question is builder made delay in completion of flat, however, it should have been completed by the 30th June 2017 as per agreement. Delay on the part of builder not mine. I think only 4.5 % may be charged for the remaining amount which I paid after implementation of GST as more than 80 percent work was completed and all the building material and others items had already been purchased by the builder before 01/07/17.

        Reply
        • Dear Rajesh,
          Just keep in mind that any payment you do to builder post GST regime will attract the GST.

          Reply
          • I have made a sale agreement with the Land owner for Land owner share flat on June 2nd 2017. I have a payment of 2 Lakhs on June 2nd and further payment of 9.57 lakhs on June 24th. Registration happened in August. After registartaion, an amount 25 lakhs was disburbed from Hoem loan.

            There is a development agreement between land owner and Builder. I have bought the land owner share flat.

            Now, the land owner is informing us that Builder is asking us to pay GST on total sale consideration. (36 lakhs)

            Now, flat is ready to occupy and Land owner is saying that he will not give possession unless I pay GST on whole consideration.

            I understand that GST is applicable only on payments after July 1st 2017.

            Land owner is citing that he did not cash the checks before July 1st 2017 and I have pay GST on whole consideration. I understand that GST will be calculated based on Check issue date and Encashing date, Please confirm?

            Builder is also not providing any Input tax credit, suggesting that bought all the material before GST kicked in. Is this Legal? What steps can I take in this regard? All concrete structure was finished before GST kicked in.

            Reply
            • Dear Manish,
              As per me, the GST will be on an encashed date rather than the cheque issued date.

              Reply
  112. Dear sir,

    I am Vijay, I have purchased the flat in Chennai on 21st May 2018. Total flat cost Rs. 37 lakhs here SALE DEED (Only UDS Amount)AMOUNT-Rs-7 Lakhs and Rest(30 lakhs) in Construction Agreement. Please clarify that the GST 12% will be calculated for Rs. 7 Laks or 30 lakhs or 37 Lakhs…
    if 7 lakhs = Rs 84,0000
    if 30 lakhs= Rs.3,60,000
    if 37 Lakhs= Rs. 4,44,000

    Reply
      • Thanks for your Reply sir,
        Which means Sale Deed Amount(Only UDS amount) Rs.7,00,000, 12% GST will be Rs.84,000/- I’m i right sir.

        Reply
          • Thanks for your Clarification sir

            Reply
  113. HI sir, we purchased 2 flats (under construction) from land owner
    ..one is 1050 sqft 44 lacs( registration value is 15.75 lacs),we avail loan with the benefit of PMAY.

    second flat is 1485 sqft 63 lacs(registration value is 21 lacs)..for this flat we paid total (63 lacs) amount before registration itself..

    Our registration was done on Feb 26 th 2018..after 1 month OC came.while purchasing ,land
    owner said we need not pay GST for both the flats…now he is asking us to pay GST on total value…as already he took more from us by saying no GST…
    He is asking us to pay
    GST for 1st flat 8% of 44 lacs
    GST for 2 and flat 12% of 63 lacs
    But we r saying him that we can’t pay GST…as he has not informed us before..now flat work is finish ,handing over time…now he is saying “If u don’t pay GST,I will not hand over the flats to you”

    In our case here,should GST be paid on total flat value or sale deed value?

    Reply
    • Dear Pavan,
      Yes, you have to pay the GST on the sale deed value.

      Reply
  114. Dear Sri Basavsraj

    We are planning to buy a flat in bangalore.The builder has share the price list in which the builder has mentioned gst rate as belows.please let us know is it correct ?

    Basic Sale Price (BSP) gst 12%

    Generator Charges gst 18%
    Gas Bank Charges gst 18%
    BESCOM/BWSSB Charges gst18%
    Legal and Khata Charges gst 18%
    Car Parking Space Development Charges(CPSDC) gst 12%
    Club Development Charges gst 18%
    Other Charges (OC) – Payable on notice to possession
    Advance Maintenance for 1 year gst 18%

    Regards
    Jyotshna

    Reply
    • Dear Jyotshna,
      Why you have to pay for legal charges and car parking? Please take the legal opinion before going ahead.

      Reply
  115. Hello Sir,

    I have purchased a villa in a gated community. As you know gated communities will comprise Developer’s share of villas and Landlords share of villa’s, the one I purchased was from landlords quota. I have made all the payments in favor of the landlord who is an individual. In this context, am I still supposed to pay GST to the government? Please suggest.

    Reply
  116. Hello Sir, We booked flat in the month of December 2018 which is land owner flat under construction. I have paid 20%of the amount on total value. Initially he was said that we can go for registration after completion of construction and after getting NOC .but now he changed his thought and pushing us to pay rest of the amount. So can you advice us if we go for registration now how much percentage we need to pay as GST on total cost value of our property.

    Reply
    • Dear Meena,
      Regarding GST rate, it is already explained in above post. Regarding going for registration at this stage is purely your belief on these builders.

      Reply
  117. P K Roy says
    12th May,2018
    Dear sir,
    I booked a flat at Bangaluru which is under construction & to be delivered in December,18 The agreement was done on 8th November,2017. In the agreement builder mentioned GST @ 18 %. I have paid almost 80% of the cost to the builder. On demand notice they are charging proportionately GST @ 18 %. I have come to know that from October,2017 real estate GST rate has been reduced to 12%
    Please advice me in detail
    With regards

    Reply
    • Dear Roy,
      Please refer above post and accordingly discuss with your builder for the same to revert the additional GST you paid.

      Reply
  118. I am buying a flat where the building is under construction and the agreement is done for sale in March 2018 and agreement value is 17,00,000/- . and I have given Rs. 2,00,000/- as advance at the time of doing agreement and rest I will pay on completion of building so I have to pay GST on total flat value Rs. 17,00,000/- or the GST on advance Rs 2,00,000/-.

    Reply
    • Dear Monika,
      Your advance is inclusive of a flat value. Hence, you have to pay the GST on total sale value.

      Reply
      • Dear Sir,

        But the rest amount will be paid after completion of the building and GST will not be applied after Completion certificate is given. so I think GST should be levied on advance only. What do you say??

        Reply
        • Dear Monika,
          It is the timing of the booking that is considered for GST.

          Reply
  119. Hi Sir,

    We are planning to buy a flat which is of 1125 Sft including common area. Builder is asking to pay 12% GST but they are not giving any input tax credit to buyer. As it is 1125 sft is the GST % should be 8%? Can we ask builder on input credit.

    Please help me. They are charging high rate on sft, amenities (non gated apartment) and GST too.. which is increasing the cost of apartment.

    Reply
    • Dear Prameela-Whether you are eligible to apply loan under CLSS? If yes, then you have to pay 8% GST. Otherwise, you have to pay 12% GST.

      Reply
      • Thank you for the reply..Im under 12 lk income slab I think I am eligible for that.. If we take loan for 10 years what percentage of GST is applicable.

        And is builder not required to give input tax credit to customers?

        Appreciate your reply..

        Reply
        • Prameela-GST will not change based on your time horizon of the goal. Regarding input tax credit, it the case you have to discuss with your builder only.

          Reply
          • Hi sir, I’m reading your site very carefully. Its a very good site with really helpful opinion. But tell me, when govt set the rule of input credit, should not them set rule to share the amount to customer? No rule should be depend on humans mentality, but here we have to depend on builder’s mentality.

            Reply
            • Dear Souvik,
              Yes, there is no set of rule for input credit. Because it is purely the decision of the seller.

              Reply
  120. Sir,

    I have not paid any Service tax or GST till date towards the purchase of my flat. The builder was demanding GST @ 12 % on entire sale consideration. But as per the clarification received from you I said that GST is only applicable on the amounts paid after the date of applicability of GST. Moreover he is not submitting any proof of payment of GST or the input tax credit claimed by him.

    Now, he is asking me to mention in the sale deed that” If any demand arises hereafter for GST or any tax payable to Government agencies pertaining to this sale of flat, the purchaser agrees to make such payment”

    My question is what about any penalties for non payment of GST by the builder in time, secondly what about the input tax credit.

    Can I mention in the sale deed that the “purchaser herein agrees to pay GST net of input tax credit if any applicable to the concerned government department directly or on submission of suitable proof by the vendors”. Please guide Sir, since the builder has not given any receipt or proof of payment of service tax/ GST to any of the purchaser in the building yet.

    Reply
    • Dear Suvidha,
      First ask for receipt with proper GSTIN, then think about terms.

      Reply
      • OK will do that. Thank you Sir.

        Reply
  121. I am planning to purchase a flat in Thane which is getting ready by end of June. Occupation certificate is not obtained yet by builder which is expected to receive by end of June only.

    I am buying this flat from an investor who has already registered his agreement with builder and made all the payments to him. I just want to know if builder can ask me for GST payment as occupation certificate is not obtained yet. It is a resale property but the same is still under construction (as Occupation certificate is not obtained) so I am confused, pls guide me.

    Reply
    • Dear Navin,
      Yes, builder will ask you GST as the property is in the state of under construction.

      Reply
      • Dear Mr. Basavaraj,

        The seller has advised that he has already paid GST to builder for him agreement so I dont need to pay anything to builder. However I am not clear if GST payment is made once on any property then can builder ask again legally for the GST from 2nd buyer, pls advise.

        Reply
        • Dear Navin,
          He can’t ask twice for the same property. Your seller is right.

          Reply
  122. Hi

    My PMAY CLSS is approved, but builder has still charged 12% GST in March 2018 and has mentioned the same in Receipt as well.
    Can you please suggest how can I proceed for Tax refund of 4%.

    Thanks,

    Reply
    • Dear Aditya,
      Hard for you. It is the work of your builder. Let me do it.

      Reply
    • Hi Aditya,

      Just want to know, how much time taken to approve your PMAY application and after approval what document you have received to submit to builder such as PMAY certificate, acknowledgement document or anything else.

      As per my banker, I am eligible for PMAY scheme and application is in progress..

      I want to inform my builder in advance even if NHF approval is pending.

      Reply
  123. Hi Basu,
    I have an issue. I am purchasing an under construction property which is built on MIDC Land. Since MIDC is giving the Land on Long Term Lease, my transaction is in the nature of long term sub lease but in the nature of sale. The developer is relinquishing all the rights.

    The developer is charging 18% GST and not allowing any abatement citing why should he take a risk by providing abatement for the land.

    Is he justified in doing that.

    Kindly enlighten.

    Reply
    • Dear Bharat,
      I am not sure on what basis the lease was given. Hence, hard for me to comment anything. However, demanding 18% GST is against the rule. That you can avoid.

      Reply
  124. Sir,

    Where do i find notification for 8% GST after Jan-18 in under construction property.

    Reply
    • Dear Jatin,

      I already shared the same in few comment replies. Refer the same.

      Reply
      • Sir,

        Couldn’t able to find this one.

        I am grateful if you shared once again.

        Reply
          • Dear Sir,

            I am eligible for CLSS, Hence i have requested builder to take 8% GST but builder is not ready to take 8% GST despite of mentioning the notification of Govt for 8% GST as he confirms that this benefit can be avail if carpet area is upto 60 Sq. Meter but my flat carpet area is 62.08 Sq. Meter.

            Please guide, what is to done now.

            Thanks
            Jatin

            Reply
            • Dear Jatin,
              If you are eligible for CLSS, then it is within the rules. I know that CLSS eligibility also depends on carpet area. But you are claiming that you are eligible. Hence, the applicable GST is 8% for you.

              Reply
              • Sir,

                But builder is not agreed for that, he said 12% GST applicable because the carpet area is 62.08 Sq. Meter.

                What action should i take further ?

                Reply
                  • Dear Sir,

                    After necessary discussion for proof of notification, he has given me the same notification which was provided by you earlier. e.g.http://pib.nic.in/PressReleseDetail.aspx?PRID=1519450.

                    In this file, they have highlighted following lines.

                    The Fouth Recommendation of the council is to extend the concessional rate of 12% to services by way of construction of low cost houses up to a carpet area of 60 sqm in a housing project which has been given infrastructure status under notification no.13/06/2009 dated 30th March 2009.The said notification of department of economic affairs provides status of affordable housing.

                    Affordable housing ha been defined in the said notification as a housing project using at least 50% of the FAR/FSI for dwelling units with carpet area of not more than 60 sqm.

                    Please guide.

                    Reply
                    • Dear Jatin,
                      I also shared the same notification in above post. That is the reason I said if you are eligible under CLSS, then 8% GST. Also, check whether 60 sqm of your’s is carpet are or total area. Here, in this notification, they are mentioning carpet area.

                    • Dear Sir,

                      Yes the carpet area is 62 sqm and not total area.

                    • Dear Jatin,
                      In that case, you have to pay 12% GST.

                  • The carpet area in the MIG I category of CLSS is now increased to up to 120 sq metre from the existing 90 sq metre. Carpet area for MIG II category of CLSS has been increased to up to 150 sq metre from the existing 110 sq metre, the government said in a release.

                    The changes, which are aimed at enhancing the scope, coverage and outreach of the scheme, are effective from 1st January 2017, the date the CLSS for MIG had come into effect.

                    Read more at:
                    //economictimes.indiatimes.com/articleshow/61674876.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

                    Reply
  125. I have booked the flat in 2017 before GST.
    I noticed the builder is taking 12%GST on rest of the amount from me where as he is charging 6% from the new buyers
    Am I entitled to claim my additional; 6%? is this a fair deal?

    Regards
    Anil

    Reply
    • Anil-He may be giving some discount in GST and paying from his own pocket. How can you question that?

      Reply
      • No I am not questioning rather I am finding reason why that is not extended to me ? why two SOPs one for me and one for others ?

        And I just wanted to know if it is legal and above all he is not showing that he is paying from own pocket but he is charging 6%
        I am also amazed he didn’t gave discount on base price but charging less GST?

        Reply
        • Anil-He may be paying them back in the name of Input Credit. Hence, better to ask him in what way he is giving the discount to others.

          Reply
  126. I have been booked/agreement under construction apartment from Shravni Enclave at Sampatchak, Patna on Nov 2015 for Rs.18,10,000/- including development/parking charge . Amount of Rs.301001/-paid through cheque and Rs.1228500/- paid through SBI House Loan before Jul 2016. Rs.271500/- balance for payment by SBI hourse loand. Builder said that 12% GST to be paid during registration. Please intimate 12% GST is right or wrong.

    Reply
    • Sinha-Yes, for the rest of amount what you have to pay, the 12% GST will be applicable.

      Reply
  127. Dear Sir,

    I entered into an agreement for purchase of flat under construction on 29.08.2016. The payment was made to the builder by HL Sanctioning bank in phases based on the state of completion.

    Therefore part of payment was made before 01.07.2017 and part thereafter. The registration of sale deed is yet to be done. Mean while the construction is completed and Occupancy Certificate is issued by the competent authority. Also the other flat owners in the building have started staying thereat.

    I am requesting the builder to complete registration. He is asking me to pay GST @ 12% on the entire sale consideration. Please guide about applicability of Service Tax/ GST in the present case where agreement was made before applicability of GST and Construction is completed before registration.

    Regards

    Reply
    • Suvidha-GST is applicable for the payments which you made during the GST regime start.

      Reply
      • Sir,

        what about service tax pre GST Regime

        Reply
        • Suvidha-It is as per the applicable service tax rate before GST regime.

          Reply
          • Thank you Sir. Lot of confusion is sorted as the builder was asking for 12% GST on the entire sale consideration.

            Thank you once again for immediate response.

            Regards

            Reply
  128. Hi,

    I have booked flat in Navi Mumbai in March 2017 and completed registration in May 2017.

    After flat registration I made payment as per completion status before 30 June 2017 and service tax as applicable.

    Now payments is getting disbursed by bank as construction get completed in more phases and developer is asking to pay 12% GST TAX which is profiteering practice.
    http://www.cbec.gov.in/resources//htdocs-cbec/gst/reduced-liability-tax-home-gst.pdf

    I have asked developer to pass benefits under reduced TAX liability under GST regime or provide Input TAX credit.

    Developer agree to pass input tax credit but not giving complete clarity on how much ITC can be passed or how to pass benefit of lower GST and is still asking pay 12% GST TAX which is illegitimate.

    Also developer said that input tax credit will be given on payment done before 30 June 2017 (i.e on service tax) not after 1 July 2017 (.i.e. GST) which seem wrong.

    As a developers were not entitled for any input tax credit on service tax then how can they pass ITC to me.

    ITC is given on GST then how they can give ITC when Service TAX and VAT paid.

    Also my PMAY application is in progress. So once its approved how it can be taken to developer for 8% GST.
    Is that 8% GST applicable for entire payment done after July 2017 or only subsidizes amount.

    Thanks & Regards,
    Mahesh D

    Please help me to understand same.

    Reply
    • Mahesh-“Also developer said that input tax credit will be given on payment done before 30 June 2017 (i.e on service tax) not after 1 July 2017 (.i.e. GST) which seem wrong.”-YES.
      The 8% GST will be post the notification of reduced GST payments.

      Reply
      • Hi Basavaraj,

        Thanks for prompt response.

        In what context “The 8% GST will be post the notification of reduced GST payments.” ?

        Reply
          • I have booked an under construction flat and paid 2 demands after 25th January 2018 with 12 percent GST .I fall under CLSS scheme and asked the builder to apply 8 percent GST.Now builder is saying that 8 percent GST will be applicable only from next demands but they will not neither adjust nor refund the excess payment of last 2 demands.Builder is saying that they can’t adjust the previous 2demands with 12 percent GST as GST invoice has been already raised in past 2 demands and hence they can’t refund or adjust.
            My question is can I do anything in this case or the fact is true from Builder’s point.confused.pls advise.

            Reply
            • Arindam-Check the reduced GST effective date of the notification. If you paid before this notification, then you will not get back the difference of GST. Otherwise, you have all rights to ask for the refund of excess GST you paid.

              Reply
              • Hi Basavaraj,

                Can you please share the link for official notification.

                Thanks
                Aditya

                Reply
                • Dear Aditya, It is already shared in below comments. Please refer the same.

                  Reply
  129. Hi Basavraj,

    Can you please help me with the following query?

    I am planning to purchase an under construction property and till now, 95% has been paid by the original buyer( all of it was paid before 1st July, 2017) and registered under the original buyer name. Its still under construction and not yet handed over from the builder and anticipated be delivered by Dec 2018.
    I was told by my Father in law the registration would be between me and the original buyer and builder is not involved. In this case, is a transfer of ownership of property attract GST only on remaining 5% or whole 100% ?.

    Please let me know.

    Thanks,
    Venkat

    Reply
    • Venkat-How can the original buyer transfer the property when it is not yet registered under his name?

      Reply
      • It seems like the property is already paid in full by the original buyer in 2014/15 and registered( I am going to check the original documents) only remaining 5% is only for association fee/corpus etc at the time of delivery.

        Reply
        • Venkat-You check, the original buyer just paid the installments not registered. Hence, how can he be a legal entity to execute the sale deed as the rightful owner?

          Reply
  130. WHAT DOES IT MEAN BY ” ISSUANCE OF COMPLETION CERTIFICATE BY A COMPETENT AUTHORITY OR AFTER ITS FIRST POSSESSION WHICHEVER IS EARLIER “

    Reply
    • Mansuman-Either OC or possession by owner, whichever is earlier.

      Reply
  131. Thanks for your prompt response. But my question is, how can the contractor charge me GST for renovation, when it is exempted under the GST rules. From the Exempted services manual for CGST, it says and I quote “Services by way of pure labour contracts of construction, erection, commissioning, or installation of original works pertaining to a single
    residential unit otherwise than as a part of a residential complex”, no CGST is applicable.
    Any comments?

    Reply
  132. Mr. Basavaraj,
    You might have answered this question before, but I am getting renovation done on a residential property in Bangalore through a contractor. Is GST applicable, and if so, how much?
    Thanks.
    Mohan

    Reply
    • Mohan-You are not purchasing the house. Hence, GST for property purchase will not be applicable. However, the contractor who took the task fo renovation may charge you the GST for the service of renovation he did for your house.

      Reply
      • Thanks for your prompt response. But my question is, how can the contractor charge me GST for renovation, when it is exempted under the GST rules. From the Exempted services manual for CGST, it says and I quote “Services by way of pure labour contracts of construction, erection, commissioning, or installation of original works pertaining to a single
        residential unit otherwise than as a part of a residential complex”, no CGST is applicable.
        Any comments?

        Reply
        • Mohan-Builders do such acts as they want to profit by hook and crook. How much you rely on your builder is left with you.

          Reply
  133. Sir – I have booked property under construction and partial payment disbursed from July-17 and subsequently i have applied for PMAY through PNB Housing. Since one month i had discussion with PNB and they are saying that it is rejected because of miss-match in income and have to re-apply for PMAY and it will be process for 4 months. Now what happened, my builder will give possession on or before Jun-18 in this circumstance, i may need to pay 12% GST because i am not getting eligibility under PMAY/CLSS. so the bank is saying if the property is under construction than how could you apply for PMAY, i cannot apply for under construction property as per PNB housing.

    As per the govt, i have fulfilled all the requirement for eligibility like i have no property,income details, property booked in my wife name etc…

    What is the truth ?

    Which authorities will help me in this regard ?

    Should i log FIR against PNB Housing ?

    Reply
    • Jatin-I am not sure how bankers stating that property must be completed enough to apply for PMAY. You just ask them to give in writing the ruling which they are saying about.

      Reply
  134. If the builder charged gst @8% under clss scheme under PMAY then builder is elgible for taken credit of ITC; which is already paid during material purchase

    Reply
      • Hello sir,
        I have submitted loan sanction letter and affidavit that I am first home buyer . I have applied loan under clss pmay and writen on my loan sanction letter . But builder is asking for NHB approval letter is required . Is that madetary I need to submit to builder ? For gst rate reduce from 12% to 8% for clss . Because NHB approval will take time around 5-6 months. And till that time they will charge 12% gst.

        Please suggest what is best solution for my query.
        Thank you.

        Reply
        • Shivkumar-I already replied. There is no such rule. If it is, then let them show to you that it is mandatory to accept 8% GST.

          Reply
  135. Hi Basavaraj,

    You are doing such a great job on GST thing. Appreciate.

    This is Sharath, am buying a 3bhk flat in Hyderabad and am buying this flat from Land Owner share, before giving a token amount to book a flat he said after Occupancy Certificate there will be no GST applicable.

    Now i have paid 50% advance amount on 11th Apr 18 and Land Owner is saying as per new “GO Notification No. 4/2018-Central Tax (Rate)” forcing me to pay GST. ,That too landowner doesn’t have GSTIN number and he is saying that he needs to pay GST amount to the builder.

    is that required to pay GST for land owner share flat?

    Note: Occupancy certificate issued on 2nd Apr 18

    Thanks in Advance!
    Sharath

    Reply
    • Sharath-GST is applicable on all such properties where the construction is not completed and you booked. Regarding GST payable to landowner, let him show the GSTIN and then only you pay the GST. Who knows to whose account your paid GST be pocketed?

      Reply
      • Thanks Basavaraj,

        1. I have given token amount 15 days before Occupancy Certificate, and Do i have to still pay GST on Land owner share?

        2. Land owner is showing this “GO Notification No. 4/2018-Central Tax (Rate)” and asking to pay GST, even purchasing from Land owner share too..is that correct?

        3. Now Occupancy certificate issued that means building is completed rite? So still we need to pay GST? and what would be the % if we really we need to pay GST?

        Thanks in ADVANCE
        Sharath

        Reply
        • Sharath-1) Yes as it is considered as under construction property.
          2) You have to pay GST but not to the landowner but to the builder who took legal ownership to build and handover you (a person with whom you go for sale deed).
          3) It means not yet completed.

          Reply
  136. I want to know is GST applicable on EDC/IDC components of a underconstruction flats of pvt builders and what is its rate ? Secondly previously in Sohna (Gurugram Distt)there was no service tax applicable on this component .Also I would like to know what is the rate of GST on club facility and open car parking ?

    Reply
    • Sujata-I am not sure what is these EDC or IDC. On your salve value you have to pay the GST (rates already explained in above post).

      Reply
  137. An under-construction property was purchased in July 2016 in Bhartiya City Bangalore, and since July 2017, a GST of 18% is levied on the same.
    While we had been making quarterly installments eversince, there’s ambiguity in the actual applicable GST where some buyers claim it should be 12% rather than 18%. Please advise.

    Reply
  138. Sir I have an agreement to purchase a flat dtd.22.10.2013. 95% cost had been deposited to the promoter ?uring 2014. Now I am going to register the property under WB Govt. Property act. Plz. Let me know the GST to be charged along with Stamp Duty & Registration chgs.

    Reply
    • Tapas-GST will be applicable on the remaining amount which you have to pay to builder.

      Reply
  139. Hello sir. My flat registration is done in nov 2017, am eligible for pmay scheme which i have to apply now along with photos of the project in hdfc . So my question is in order to pay 8% gst should i get my pmay scheme approved before the registration? If i get approval now in April 2018 should i pay 12% gst?

    Reply
    • Harsha-Yes, approval is must to show that you are eligible for 8% GST.

      Reply
      • So , as am applying for pmay now I have ro pay 12% gst right sir?

        Reply
          • Hello sir,
            What proof we need to submit to builder ?

            And clss may be approved after 3-4 month after loan sanction , in that case can I get return on amount paid after 25 January 2018.?

            Reply
            • Shivkumar-It is the bank declaration that your loan is approved under CLSS.

              Reply
              • Sir,
                I have submitted bank loan sanction letter and affidavit self deflation. But builder asking for NHB certificate . And I am not sure when I will get that. Because I am not sure when I will get that approval and letter from NHB.
                So whether builder NHB certificate is mandatory to submit?

                Thank you .

                Reply
                • Shivkumar-NHB Certificate is not mandatory. However, your builder just creating a problem so that with fatigue you agree to his condition. Which way you take now is left with you.

                  Reply
    • Sir please kindly address my issue as its a great confusion for us now. Is it mandatory to get the loan through pmay scheme before the registration only inorder to pay 8% gst. Coz i got my loan sanctioned before registration but i have to apply for pmay now.

      Reply
      • Harsha-Yes, because builder want the proof that you are eligible under CLSS.

        Reply
  140. What is the flat area eligibility for CLSS MIG 2 ?
    Also for 8% GST?

    Reply
  141. What is input credit charge?If I am paying 12% GST. How builder will pass the credit?

    Reply
    • Pooja-If the builder has already paid the GST for the products and materials using which he built property, then he can reduce to that extent of paying GST of what you paid. Such saved GST if he want can reverse it to you.

      Reply
  142. Can we buy without GST or if it possible than how much amount will have to pay ??

    Reply
  143. Dear Sir

    I am Dandashi Anjangi , We are going to purchase a underconstruction flat in a apartment at hyderabad. by housing loan at SBI

    The builder has given two agreements i.e Agreement for Sales of flat for Rs. 17 Lac and Agreement for work order for 19 Lac Total 36Lac.

    Kindly inform the following

    1. Whether we have to pay GST charges to only work order amt ( 19 Lac) or Sales amount ( 17 Lac) or on total ( 36 Lac)
    2.Please inform how much % of amount we have to pay to builder as GST
    3 bank has issued the cheque for Rs.17 Lac. towards registration of flat. how much registration charges and GST we have to pay
    4. If we have to pay GST ( how much % ) on total amount , please inform whether we have to pay the registration fee also ?

    we will grateful to you on receipt of information at the earliest. Please don’t ignore my quarry

    With Regards

    Dandashi Anjangi

    Hyderabad

    Reply
    • Dandahi-I am not sure why such split. However, GST will be applicable on the amount which you mention on sale deed. In your case it is 12%.

      Reply
      • Any registration charges like stamp duty , muncipalty tax ??

        Reply
  144. Hi sir,
    I am have been allotted with BDA flat ( Banglore Development Authority) on August 2017 which was under construction & thy are going to hand over flats in sept 2018.BDA has not told anything about GST during allotment.
    Please let me know is GST applicable for BDA flats also?

    Reply
  145. I would like to purchase an under construction Flat and fall under the category of Middle Income Group-II (MIG-II) for claiming interest subsidy under ‘Credit Linked subsidy Scheme (CLSS)’ for Urban Areas.

    The project does not come under PMAY/CLSS, but my understanding is that even individual flats can be acquired under this scheme, conditional to the requirements of MIG-II, which I fulfill.

    What would be my effective GST rate for purchasing a flat in such a project, 12% or 8%?

    Reply
      • When contacted with multiple builders, they fervently claim it is 12% and deny any such 8% slab exists.
        In such case, whom to report or what action can be taken?

        Reply
  146. Hello
    Quay about building society formation my agreement value is 1800000 flat is in society include or not I booked on 12 July 2017 now builder demanding 12 % gst
    Whats gst % I have to pay
    Builder demanding society formation amt in cash 125000/
    Please share comment what I should do

    Reply
    • Shailesh-For property purchase, GST will be applicable on sale deed value.

      Reply
      • How about if value in “Agreement of Sale” and value in “Sale Deed” are different. Which is considered for evaluation of GST?

        Reply
          • Sale deed is made for X, Agreement of Sale is made for 1.5X . Actual value of property is 1.5X . Should the GST be paid for sale deed value of agreement of sale value? (X or 1.5X)

            Reply
              • My land owner is asking me to pay 12% GST on Sale Deed Value and 18% on remaining work order. Registration was done in August 2017.

                He is quoting that sale consideration in the sale deed is for “Semi Finished Flat” only
                ( Including amenities like water, drainage, electricity,one car parking,etc.,.)

                During the registration all the structural was already completed.

                Reply
  147. Shailesh
    Development charge are include in agreement valu or (society formation charges I need to pay my self or include in agreement valu

    Reply
    • Sir, I had called in cbec govt site and they are telling that I will have to give 12 %gst as only the press release has come and the notification has not been issued

      Reply
        • Yes.It may be treated as Government order. It is released by Ministry of finance,Government of India.Also Press Information Bureau is the face of Government of India.

          Reply
      • Sir, the cbec member is telling me that 8%gst would not be applicable as G. O. has not come out. Is it true? Do you have any idea when the G. O. will come out?

        Reply
        • Riya-Refer few comments where I shared that NOTIFICATION. What more Govt proof they need? Do they need personalized notification be sent to them??

          Reply
  148. Sir
    After booking the 1st installment given to the builder before July17 where the builder has collected 4.5% service tax.
    The builder reassess the value in gst regime which includes gst rate as 18% and the value of the property a little bit more but nearly equal to the value of the service tax regime. And phasewise collected the installment charging 18% gst.
    But now the gst rate has come down to 12% and for the balance installment they did not place sny demand notice.
    Provided that the value of the property is arround 20 lakh and we applied for the interest benefit under PMAY.
    Now my point is that whether the gst collected by the builder @18% is refundable/ adjustable or not with the future demand. As a buyer whether we have to suffer for the payment made when such gst rate was 18 %.
    Please advise.
    Regards
    Sujit Kumar Das
    9433036600
    9434193036

    Reply
    • Sujit-GST at 18% is not at all acceptable. It is 12% and also if you applied for loan under PMAY, then it is 8%. The builder has to refund this.

      Reply
  149. Sir maine Feb 2017 main flat liya hai.mujhe May 2018 main possession milnewala hai.or mera registration 31 june ko hogaya hai.and mera PMAY subsidy mili hai.to kya mujhe gst paid krna hoga or kitna

    Reply
  150. Is GST is applicable to me if i buy completed Flats/Property or ready-to-move-in property from builder or from resaler.

    Reply
    • Varun-Refer above post. I already cleared that ready to occupy properties not come under GST.

      Reply
  151. Sir,my builders lawyer is telling that they will ready agreement paper with 8%gst, but there will be one clause that is if the builder has to pay 12 %gst at the time of ITC fill up,then I will have to pay extra 4%gst with full penalty and interest. They are really warning me that I will be in great danger then. What should I do? Plz guide.

    Reply
    • Riya-You follow what the Government set the rule. I am not sure about your builder and why you are scaring so much with them as you are BUYER and they are just SELLER.

      Reply
  152. Hello I bought flat in November 2016 and get possession on June 2018. How much gst we have to pay as our loan senssioned in DEC 2016 and pre installment are paid since January 2017 to till date. Please guide .

    Reply
  153. Land cost 11 lakh
    development charges 18 lakh
    construction charges 32 lakh

    we have applied now for PMAY MIG II

    Amount Paid
    Before 1 july 2017 12.2 Lakh
    rest from loan 23.5 Lakh in october 2017

    Please help on gst calculation

    Reply
    • Nikita-It is hard for me to calculate each individual. However, by referring the above post, you can take the help of the builder to arrive at the GST payable by you.

      Reply
      • thanks i meant do i need to consider development charges? i mean for land and building cost do i need to add development cost?

        a) 11+18+32=61*12%?
        or
        b) 11+32=43*12%?

        which is correct?

        Reply
        • Nikita-If development cost is also the part of sale deed, then YES you have to consider it.

          Reply
          • Sale deed means transfer of land title?
            in sale deed cost of land is 7 lakh
            in sale agreement development charges is 18 lakh and land is 11 lakh

            now gst charges will be 61-12.2(which is paid before 1/7/2017 4.5% service tax)=48.8 lakh
            S0 on 48.8 lakh 12%?

            Reply
            • Nikita-I am repeating, the GST has to be payable on the amount you will mention on sale deed.

              Reply
  154. Sir I have booked a flat on 26 th February, 2018. My builders have mentioned 12 %gst on agreement paper. I belong to clss and my loan has been approved under pmay. Now what is the gst rate of my under construction flat? What is the circular number of the government published on 25th January 2018

    Reply
    • Riya-For you the applicable GST rate is 8%. Refer few comments where I shared the notification details.

      Reply
      • Sir, my loan has been approved under pmay and I belong to clss (MIG 1). Is it necessary that the building( where my flat is) has to be under pmay scheme, then I can get 8%gst. Otherwise not?

        Reply
        • Riya-It is not builder which is to be CLSS but it is your eligibility that matters.

          Reply
  155. Hi Sir, I had buyed 1 bhk flat in thane in under construction building, I had also applied for loan under PMAY in Icici bank, I had done with registration and stamp duty during which builder took 12% GST from me…. my question is 1) I should pay 8% GST Or 12% GST to builder as i had applied for loan 15 days back only and i am unware that PMAY amount is deducted or not form my loan amount
    2)Builder is denying to give me any GST slip, he is telling GST will be paid all together of all flats and it is not individually paid so you will not get any GST slip please let me know I should get GST slip or not? Is GST paid indvidually for each flat or its is paid all together for all flats.. Waiting for reply

    Reply
    • Shadab-1) Post your approval under PMAY, you have to pay 8% GST.
      2) He has to give the receipt with GSTIN mentioned on that. Please ask for that.

      Reply
      • Hi sir thanks for reply,

        Builder is saying That he will be paying GST of all flats in common And he is not paying it individually for every flat , hence i cant give you any receipt from him. So is he lying me ? Does gst for all flats in building paid together?

        Reply
        • Shadab-Let me pay in bulk. But he has to give you a receipt with break up of all payment and tax right? Also, he has to mention the GSTIN on such receipt.

          Reply
          • Thanks for reply sir …
            Please let me know that GST is paid by builder to the goverment at the time of stamp duty and registration process or else it is paid after completion of building at time of possession

            Reply
  156. For getting reduced benefit of GST (8%) is it required that the home loan has to be sanctioned under CLSS PMAY?In my case My home loan was sanctioned on march 2017 and I applied for CLSS (MIG II)in the first week of may 2017 and the application was processed by state bank of India and sent to central nodal agency.I have already got the benefit of CLSS in my account.I have submitted all the documents pertaining to CLSS including my loan account statement evidencing my eligibility of CLSS.Now bank is asking about the documents evidencing loan sanctioned under CLSS which I don’t have as that time option was not there at SBI RACPC.What should I do in this situation?Please reply.

    Reply
  157. Sir, I have booked a flat in Sawantwadi, dist sindhudurga. The flat size is below 60 sq.mtr. so how much GST is applicable. The project is not under any scheme. And other question is GST vary depending on size of the flat.

    Reply
    • Suhas-GST rate not vary based on the size of the flat. It is same and I mentioned the rate in above post.

      Reply
  158. Hi, I booked a flat for 53 lakhs back in April 2017. I paid 27 lakhs before July 1st 2017. So should that amount falls under gst or service tax? And I have opted for PMY (CMSS) so should my remaining amount be charged at 8 percent? Plz help and clairfy this as my builder is pressurising me to pay GSt @12 percentage on overall 53 lakhs…. Also he has added corpus fund & maintanence charges of 1 lakh rupees @12% GST. Isnt this be not charged at all?

    Reply
    • Kirthi-Any amount which you paid before GST regime, will be applicable with service tax. Any amount which you paid up to the CLSS notification date (which is shared above) will be with 12% GST. Any amount you pay after that notification date will be with 8% (if you are eligible for CLSS).

      Reply
      • Thank you Basavraj. But u did not answer my last question. Plz guide me on this.

        Reply
        • Kirthi-I am not sure about CORPUS FUND. But maintenance is the service, you have to pay the applicable GST.

          Reply
          • Thank you Basavraj. One last question, today I went to bank to apply for CLSS and I’m told I have to pay close to 50k as processing fee and some other PF charges? Is this true? Is bank cheating me? I have taken 55 lakhs loan and after 12 lakhs they have to put all these charges itseems for remaining amount. Plz plz help me understand this as I don’t wanna pay so much amount to get my subsidy. Are they cheating?

            Reply
            • Kirthi-I don’t think there is any processing charge in relation to apply for CLSS. They are misguiding you.

              Reply
              • Thank you for the clarification.

                Reply
  159. I have booked under construction flat before implementation of GST. Now OC Received by builder and demanding stipulated amount payable on possession. My query is that whether GST is payable on amount payable on possession after receiving OC . Builder are demanding the same>

    Reply
  160. Hi,

    For an under constuction property I paid full VAT amount 1% before June 2017. Now as GST comes into the picture with 8% effective rate., I would like to know how VAT amount which is already paid will be adjusted?

    Thanks.

    Reply
    • Pankaj- How they accepted VAT on full amount before you pay the dues?

      Reply
  161. Service Tax on Development Charges of Under Construction Flat:

    Hello Basavsraj,

    Need small help. I booked a under construction 2 BHK Flat in Pune in 2016. During that time, the sales person excluded(did not considered) Service Tax on Development Charges of 4 lac. Even my agreement cost didn’t had this value on index-2. It is mentioned in agreement in later pages, Stamp Duty and Registration was done excluding this 4 lac amount. We neither had any conversation that i will pay that 4 lac in cash.

    Now during Possession of flat, he is asking me to pay Service Tax on that development charges. My question is, is it legitimate and should i really pay that tax amount on Development charges ?

    It clearly looks like it was their strategy to lure the customer at that time, as they portrayed that amount as discount and cracked the deal; but now taking that amount via different channel.

    Also i have one more doubt, can builder ask for GST on 1 year maintenance we will be giving upfront during possession ?

    Appreciate your valuable input and thoughts.

    Sachin G

    Reply
    • Sachin- Service tax concept is now no more. Above that, what they are asking the money in cash and which also not part of sale deed means it is purely illegal. Regarding GST for maintenance, yes they can ask the applicable GST.

      Reply
      • Hi Basu,
        I want to know if before GST came into picture, i made the deal where Service Tax was not included on Development Charges of 4 lac; now while possession can they include that component and charge me 4.5% or GST on that amount ?

        The signed Cost Sheet they gave me at that time never had auch Service Tax applied on it. To reduce cost of flat and Stamp Duty, most of time builder use such tricks of showing lower Agrrement Cost. My case is sumilar to it.

        Reply
        • Sachin- Even though agreement mentioned it but you are paying now, then service tax not applicable. But you have to pay GST if service is eligible for GST.

          Reply
          • Thank You,

            In general, does infrastructure/Development Charge comes under Service Tax/GST for under construction flat ?

            Reply
  162. Sir,I have purchased & registered a under contraction commercial property in 2016 at 42lac of consideration value.
    Than I paid to the builder 205000/-vat & service tax on total value of consideration on that time. But I paid 17lac
    as part payment on that time. And now in 2018 I am paying the balance amount 25lac ,but builder is demanding 12% gst on this balance amount. Work is completed but OC is still balance. Is it right to demanding 12% gst on balance amount?

    Reply
  163. I am planning to purchase a flat in a society, which is normal builder apartment (CC not obtained yet) and not registered any scheme such as PMAY etc. Taking loan from HDFC and My loan is eligible for CLSS.

    Is only CLSS eligibility is well enough to pay 8% GST or anything else is required??

    Reply
  164. My query is after 1 July 2017 both the taxes service tax and GST are applicable on the part of payment. One more question is builder has written gym as amenities can he take money on possession as saying these money are for equipment. He is taking GST on development charges and gym also. Is it right?

    Reply
    • Mamta-Only GST is applicable now but not service tax. If such facilities are also part of your sale deed, then you have to pay the GST.

      Reply
  165. Hello
    Sir 
    I have query about gst.
    I have booked flat on 12 July 2017 , this first home and I am eligible for pm awas yojana(PMAY) 
    I paid amt. to builder flat cost only till to December 2017 after 1 July 2017 gst 12% on real estate but now government announced on 24 jan 2018 the gst 8% on fisrt home  buyers under CLSS scheme (PMAY) 
    HoW to applies clss scheme but I am eligible for PMAY
     
    What % gst would be pay

    Reply
    • Shailesh-Effective from that CLSS notification, whatever the payment you do to builder will attract 8% GST.

      Reply
  166. Dear Sir,
    Govt. declared that Builders get ITC and that will be shared with the customer. can you clarify what benefit will I get as a customer if GST charge is 12% normally on Apartment.

    Reply
  167. Hi dear,
    I have a question. I purchased a ready to move flat from a Builder in Mira road. 30% is on cash and remaining is by bank loan and We recieved the cheque just today. My question is do we have to pay GST to the builder?
    OC is not yet received. But the building is fully occupied and people are living in it since a year. We have been informed by the builder that he has submitted all the documents for OC and they are still waiting for it.
    So in this case what is this building considered? Underconstruction or Ready to move? And are we liable to pay GST? And if yes How much % GST will be applicable? And this money is to be paid to the builder or is their any govt. account?

    Reply
    • Mutarba-Rules are very clear that if the property is ready to move, there will not be any GST.

      Reply
      • Is there any relation with the OC? Because the builder is telling us that since OC is not yet received, we have to pay GST.

        Reply
        • Mutarba-OC claims to be completion status. Hence, he may be saying so.

          Reply
          • So you mean the building is still considered as UnderConstruction because no Occupancy Certificate (OC) received yet and hence we have to pat GST?

            Reply
            • Mutarba-There is no clear definition of which is to be considered as COMPLETED PROPERTY. Hence, hard to say.

              Reply
  168. I want to purchase a flat (looks ready to move) Almost completed,colour finished, only basin are left) but builder not disclose completion certificate of building and demand GST 12%as we know ready to move property does not attract gst I.e NO GST
    Pl guide in this situation, how I deal with builder to save GST amount

    CHANDA GUPTA

    Reply
  169. Sir i booked under const.flat in April 2017 for 31 lakhs(all inclusive) and paid 13lakhs through sbi loan.
    My bulinder imposed increased gst on remaining amount from july17 onwards.
    Is my remaining aamount comes under inxreased gst? (Builder said 50%-50% both of we hv to bear incresed amount)
    Kindly clarify.

    Reply
      • MH old rates of taxes before gst were 11% in all.aftet gst it is 12%.so this increaed 1% ,bldr imposing 0.5% on buyers and saying that he is sharing 0.5% of the burden of gst. on remaining amout post july 17.(in old vat,ser charges,stamp duty n reg etc -11%)
        Is it so .plz clarify.

        Reply
        • Prasadd-Who shares what left with your builder and you. I am saying what GST rules applicable.

          Reply
  170. If I book a flat in guwahat India Rs 60 lace including all emmenities. GST is extra.So what will my GST ?? Is there any input I will get from Builder? Property is under construction.

    Reply
    • Dilip-Regarding GST rates, refer above post. About input tax, discuss with your builder.

      Reply
  171. Sir,
    I want to buy a flat which is below 20 lack, and the building was regularized by corporation before July 2017. I have applied for loan for 70% of the payment, and this is my 1st flat or house. so my question is do I have to pay GST? If yes then what rate of GST have to be paid, and who will pay it me or the developer?
    kindly help me with your suggestion.

    Reply
    • Shambhu-Whether it is ready to occupy at the time of booking? If so, then there is no GST. Else it is 8% (if you applied for loan under CLSS) or 12%.

      Reply
  172. Sir,
    I have purchased a flat in November-2016 at Plan (40:60). 40% at time of booking and 60% at time of possation. Basic rate was Rs. 2900/ Sqft. I paid 40% amount with tax @4.5 on basic rate(Rs.2900). Now, offer of possation is given by builder and he raised invoice for remaining 60% amount with [email protected]% on basic rate(Rs. 2900).
    My question is that basic rate for remaining amounts should be less than Rs.2900 or not as per input credit benefit ?

    Please advice.

    Regards
    Sanjeev Kumar

    Reply
      • Sir,
        Thank for your prompt reply.
        But I want to know that basic rate should be decrease or not as per input credit benefit ?

        Regards
        Sanjeev Kumar

        Reply
  173. Hi Sir,

    I have booked a flat in 2013 and paid 95% of payment before introduction of GST and for final 5% Builder is asking for 12% GST . Does GST applicable fr me for last 5 % (due at time of possession)

    Reply
  174. Hello
    I to know that after completion certificate is obtained GST is not applicable on sales if a direct sale deed is done. But if the buyer does an agreement to sale and then later the sale deed is done still the GST is not applicable or will the buyer have to pay Gst.
    Also if there is a few years old ready to move in flat but the builder hasn’t taken CC then will the GST have to be paid or will it be exempted.

    Reply
    • Tarang-While booking the property, if it is fully completed and ready to move then GST will not be applicable.

      Reply
  175. Sir,
    I have booked flat by paying initial downpayment 10% . I want to now that gst rate & gst applicable or not.
    Cost of flat rs. 24 lakh.
    Building flat is ready but only commencement certificate received & occupation certificate not received.
    In this case pls suggest me.

    Reply
    • Ajay-If you have applied loan under CLSS then GST will be at 8% else at 12%.

      Reply
  176. I have taken a property with 75l + price. This is under construction property. The builder is charging 18% gst.
    Wanted to check if this is correct for them to charge.

    Reply
  177. Hi this is rakesh here… I have booked the flat in the month of February and as per your blog the GST would be 8 percent if the property is under CLSS scheme. But my builder is asking me the pay 12 percent.
    Can you help me in this I am covered under CLSS scheme also. He is asking me for the documents can you please share me some of the links

    Reply
    • Rakesh-Refer the comment part. In one or two comments, I have shared the notification link.

      Reply
      • Will my GST be 8 percent or 12 percent, and also he is asking me approved documents for CLSS. I have shared my PMAY application is it enough or should I share something more

        Reply
  178. Dear sir,
    I have booked flat in june 2017 for under construction project. My 2nd disbursement comes from builder with 12% gst. Now in march my home loan has passed & agreement has done with bank under PMAY as i am eligible for same and bank has forwarded my documents to NHB for subsidy. In this case now can i ask builder to reduce my 2nd disbursement gst of 12% to 8% or it will be applicable when NHB approved my subsidy then it will consider for 8% gst.
    Also is this 8% gst applicable for any under construction project where people eligible for PMAY CLSS or there are specific project only where this 8% gst applicable.

    Atul

    Reply
    • Atul-8% GST will be applicable from the effective date of 25th January 2018.

      Reply
      • Dear basavraj,
        In my case what will be gst rate applicable to me as there are 13 disbursement remaining to pay builder.

        Reply
        • Atul-Post GST, all payments will be as per the GST rates explained in above post.

          Reply
  179. Please write on PMAY . Our loan is disburse in October 2017 nov Dec Jan Feb March emi are paid till now . Can we shift to PMAY . House n loan in both spouse n my name . I work from home and earn 4k per month. He looks on other financial. This will be very first house my husband have in his family . But GST took away that dream. 🙁
    ??You are great helping others. I want to do CFP. Write blog on Certified Financial Planner course.
    Our house Income not more than 12 lac including other family member earning.

    Reply
    • Cooliq-Yes, you can shift to PMAY. Interact with your banker for the same. Thanks for your kind words.

      Reply
  180. Dear Sir, I have booked an underconstruction property, a flat in Oct 2017 with an initial payment of 96%(Building completed Percentage also same) i paid registration and stamp duty also and i paid 5 home loan instalments until Mar 2018, but till date i didnt pay Gst and my property comes under CLSS PMAY scheme

    My doubt is How much GST would I have to pay to the builder 8% or 12% ?

    Reply
      • Sir but builder told me he paid gst on 12% whatever has loan claimed now told me pending loan amt it will came 8%

        And i am not giving any gst amt to him if he already paid, is there any proof for them?

        What you think he fooled me or not?

        Reply
        • Rajesh-I am not sure about his claim. It is up to you of how much you believe the BUILDERS.

          Reply
  181. Hi, Basavaraj
    your advice about TDS was very fruit full for me, now i have a another problem please help me . i had book my flat on December 2015, from then i am giving EMI , with out it every criterion of CLSS(MIG II) is matching with me. i already paid 85 % of cost . now after imposing GST builder is asking me 12% GST on present demand amount. he is not agree to give any written assurance about input tax credit . He is saying that he don’t know input tax credit percentage, and unable to give any tax credit immediately or after the present demand , every thing he will adjust at the time of final installment. i have 3 more installments including present demand.
    now my questions are
    1. can i apply for CLSS?
    2. will i believe the builder’s words,if not what can i do at present ?
    please suggest me .

    Reply
    • Sujay-1) You can’t apply as your loan is since 2015.
      2) Your GST rate is 12%.

      Reply
      • should i pay 12% GST with out builder’s written assurance of giving input tax credit?

        Reply
  182. My builder has asked for final demand with 12% – CGST and SGST applicable as on 12th March 2018. Please confirm if it is correct to apply CGST and SGST on property (flats)

    Reply
    • Achin-The applicable GST is 12%. Refer above post properly.There is nothing called CENTRAL or STATE GST.

      Reply
  183. Sale Agreement 30 lakh land
    Sale Agreement 30 lakh Construction
    Loan HDFC composite Loan

    Booking 20% plus Building Approval Rs100000 paid Total 14.2 Lakh before March 2016
    Builder Did not do any development , fed up going behind him.

    June Bank came back that Builder RERA is clear , he wont come under RERA will proceed further for Loan Approval
    Builder Handed over all documents to Bank not giving any receipts or demand notice letter to us
    Bank Person said i will give copy you start signing agreements of bank for Loan
    We did as such thinking land cost 30 Lakh
    For shock after a week in register office only 7 Lakh land Cost Registered. Before Registering made something and got out and asked The bank manager of branch that handed over cheque to us. They just added a word that building of 1600 sq ft needs to be built in sale deed.
    Now builder asking 18% on 30 Lakh plus Development charges of 1.5 Lakh and other expenses

    I am asking him to transfer Full Input Tax Credit which he not doing.
    Dont know How HDFC bank has Got OC and he not coming under RERA without Building a Single Villa

    Reply
    • Cooliq-Sorry I am unable to understand your exact issues. Better to consult a lawyer of your area.

      Reply
      • Plz explain on input tax credit
        . GST after input tax credit which will be passed on to customer

        Reply
  184. Hello Mr. Basavaraj,

    I have booked an under construction flat in the month of June 2017. Initially, I paid 900000 before 1st of July 2017. After that I paid the builder through loan disbursement, around 4400000. Earlier, I was not eligible for PMAY subsidy as the sq. feet was not matching as per criteria. However, after recent changes (150 sq. mtr), I am now eligible. I have now applied for the subsidy on my home loan.

    My query is: How much GST would I have to pay to the builder if I will get the subsidy on home loan? 8% or 12%
    Also, How can I get details of Input Tax Credit for my flat from the builder?

    Reply
    • Nirmal-If you are eligible under CLSS and applied for the same through your bank, then you have to pay 8% GST else 12%.

      Reply
      • Will it be on all the amount I have paid to builder after 1st July ?

        Reply
          • How can I get details of Input Tax Credit for my flat from the builder?

            Reply
              • 8% gst is applicable on all the payments done after July 1st 2017 or on the payments done after Jan 25 2018?

                Reply
                  • Hi,
                    I have paid tds on sale of property. my builder has included this tds i paid for calculating the gst.
                    is this correct?

                    Reply
                    • Dear Nirmal,
                      I am not getting you. But the reduced GST rate will be after the said notification date.

                    • I am not referring to reduced gst rate here but want to know if tds that i paid on sale of property ( property value > 50 lac) can be included for calculating the gst on my flat?

                    • Dear Nirmal,
                      TDS is the different part which never has to be included in sales values or for GST purpose.

  185. Hello sir
    I have booked a flat for 30lacks and I’m qualified for ClSS scheme.
    But builder made sale of aggrment for 13 lacks and 17 lacks as sale of agreemnt.now he is asking 12% GST on sale of agreement and 18% on work order. Can you confirm that how GST will applicable here ?

    Reply
    • Malla-Never allow such malpractices of going for lesser sale deed amount rather than the actual cost. While selling same property you have to cough more tax and your builder nicely evaded the tax NOW. Regarding GST, it will be on Sale Deed Value and that also 12% but not 18%.

      Reply
  186. Dear Sir, I have booked an underconstruction property, a flat in Dec 2017 with an initial payment of 11% and had agreed to pay the 84% of the amount in 5 equal instalments until May 2018, rest 5% during the handover early next year.

    I had initially signed an agreement with the builder in Dec 17 with my mother as a co applicant but the bank had suggested that if i apply as a single applicant , i can benefit by the CLSS PMAY scheme. I requested the builder to change the agreement in my name and signed it in early Feb 2018. A few days later, noticed that the current agreement still had the back dated date I.e Dec 2017. Is it ok for the builders to take signature on backdated agreement?

    Plus, the builder levied 18% GST on the construction cost but as I’m eligible for CLSS I enquired about the rate cut benefit, which was turned down. Is it fair in my case? What are the documents that I must give it to the builders or the bank for the CLSS and the rate cute benefit I.e GST of 8%?

    Please help as in next few days, the property is due for registration. Should I go ahead without registration without getting this clarified with the builder or cancel the property.

    Thanks in advance

    Reply
    • Shafiya-Regarding backdated agreement, how you signed without noticing that? If an agreement is already done, then in what way you question it? Regarding GST rate, if you are eligible for CLSS, then you have to pay only 8% but not 12%.

      Reply
      • Dear Sir, thanks for your prompt response. We tried talking to the builder about the 8% GST applicable in my case however, the builder is quite adamant and flatly refused to even acknowledge about the reduced GST.
        When asked about how he would pass on the input tax credit benefit to us, I was told he is not liable to do so and quoted an example of the car, chocolate sale and asked me if I will receive any input tax credit from them. He also said that the basic price that he offered factors the input tax credit which I believe can’t be the case as the rules have been very recently implemented and the construction started was back in 2016.

        What options do I have because it’s a clear difference of 3 Lakh rupees between 8% and 18% GST.

        Thanks again.
        Shafiya

        Reply
  187. Sir,GST is. applicable on agreement value or registration amount?

    Reply
  188. Dear sir,
    I have booked a flat for 19 Lac from landlord portion on Feb’18. My income is Ts 5 Lac/PA. Is GST is applicable for purchase flat from landlord ?

    Reply
    • Dear Sir,

      Landlord have no GST registration . To whom I have to pay GST amount? If I pay GST , can I get Input credit on Raw material purchased ? And how this is possible ?

      Regards,
      Tapas Mondal

      Reply
      • Tapas-If the landlord has no GST, then how he is in selling business of property?

        Reply
      • Dear sir,

        Landlord Given Power of Attorney to Builder for construction of building and as per agreement he got four flats from promoter and from his own share he sell one unit to me .It is sand alone building . And Landlord has no GST Registration .

        Regards,

        Tapas Mondal

        Reply
        • Tapas-That is their agreement. If he is in profit, then he has to be ready with GSTIN.

          Reply
  189. Dear Sir,
    I have booked a one apartment and as per agreement he should completed the apartment on 30.04.2017. But, he makes the delay and raise the remaining payment with GST. This GST charges occurred only the builder delay the process.So, may I know, who should take this GST ?

    Reply
    • Rams-You can fight back against this by taking a help of a lawyer.

      Reply
      • Dear Sir,

        Is it Legally possible ? The builder is cheating us ?

        Reply
          • Sir,

            But, the builder makes agreement like, “If by any reason of any amendment to the
            constitution or Enactment or Amendment of any other Law, State or Central, this
            transaction is held eligible for tax as a sale or service or otherwise, either as a
            whole or part of any inputs or materials or equipment used, or supplied in
            execution of, or in connection with this transaction or labour employed are eligible
            to tax, the same shall be borne and payable by the PURCHASER on demand. The
            PURCHASER specifically indemnifies the DEVELOPER against any other taxes.”

            As per my point, if the GST occurred before completion date mentioned in the agreement, accepted and ready to pay. But, the builder takes times more than mention in agreement, so getting GST.

            Reply
  190. If i agreement done with my builder after getting then completaion certificate then gst is applicable or not.

    Reply
  191. My Bank told me i will not be eligible for CLSS scheme as i have applied for the loan with my mother (non-working) as a co-applicant. The loan has been sanctioned and i have already paid my 1st installment. The sale agreement has been made between me and my mother. I am unmarried and i did not understand bank’s basis of rejection as i meet all the criteria of the CLSS MIG-1 scheme. Please advice as how to contest the case. It’s nowhere written on the scheme document that an unmarried person cannot apply for the scheme with mother as a co-applicant.

    Reply
    • Arnab-You can approach the higher level of bank to clarify this.

      Reply
  192. Sir i book my flat under construction. Registration not done i apply for loan under pmay. I am eligible for clss. How much gst I should pay? Builder told that whichever amount paid before verification are 12% after verification of pmay if you are eligible then remaining amount paid after verification applicable to 8%. Is it right?

    Reply
    • Swati-Regarding eligibility under CLSS, check with your bank. If you are eligible, then the future payments will be with 8% GST.

      Reply
  193. Sir,

    I have purchased an under construction property in Feb 18 for Rs 25,00,000/-. Agreement is made on 15th Feb 18.

    Pls clarify

    1) IS GST payable entirely at the time of making agreement for 25 lakhs or is it payable slab wise whenever slab is made and builder demands for the same??

    Builder is asking entire GST payment upfront on agreement. Is it correct??

    Reply
  194. Is GST levied on flat cancellation charges also?

    Reply
  195. Sir,
    If I purchase a flat which cost under 20 Lacs, and it is my first property, then will I have to pay the GST ? My Flat value is 19.37 Lacs.
    I have heard that under 20Lacs no GST will be applicable.

    Regards,

    Jimut Mukherjee

    Reply
    • Jimut-If you apply under CLSS then GST will be 8% else it is 12%.

      Reply
      • Sir,
        Perhaps I will not make any loan from bank. I will pay the promoter full amount from my savings by cheque.
        Then will it be 8 or 12 percent ?

        Regards,

        Jimut Mukherjee

        Reply
  196. Hi, I am booking an under construction flat. What will be the applicable GST on the apartment.

    1) This is my first house
    2) My income is 9.5 lakhs/year
    3) The carpet area of house is 850 sq.ft

    I am asking this because, I personally qualify for CLSS scheme under MIG 1 category. But builder is saying they will charge 12% GST and they don’t have details of new changes.

    Reply
    • Partha-If you apply the loan under CLSS, then 8% GST else it will be 12%.

      Reply
  197. Dear sir,
    I am eligible for class scheme Mig2. I have paid almost 70% of the flat cost before Jan 25th and the balance post that.
    Now my builder says that I will need to pay 12%GST on the amount paid before 25th Jan and for the balance amount GST would be applicable at 8%.
    Could you please let me know if this is correct.

    Reply
  198. Thank you for your valuable suggestion. I talked with builder about 8% concessional rare for CLSS customer. He said his CA is arguing that for 8% concession project should be previously registered under pant pradhan awas yojana. Is it correct or concession is applicable to any project..

    Reply
    • Ashish-If the loan is sanctioned under CLSS, what registration they need?

      Reply
  199. Sir
    Good morning
    I booked a flat in 2016 for 23 Lacs including car parking and amenities. and paid 13lacs Dec 2016 for registration, and the registration done as 13 Lacs for semi finished and 10 Lacs for construction agreement.
    Now my builder is asking 7%gst against 12% bkz he may get 5% input value.
    Kindly clarify whether gst applicable on car parking and amenities also?
    He is asking gst installment wise, they are paying slab wise to the government, is it true?

    Reply
    • Lakshmi-If registration completed before GST era, then why he is asking now?

      Reply
  200. Sir,
    I am coming under class and the GST is now 8%. But my builder not aware of that and asking proof or circular. Could you help me to get the right document to show it to builder?

    Thank you

    Reply
  201. Hi Basavraj, i have purchased an underconstruction property. I had paid 12% GST on part payment. But recently I have received a subsidy under CLSS- MIG -I (PMAY). And i came to know that after 25th Jab 2018 Gvt. reduced GST from 12% to 8%. But builder is not ready for 8% he is insisting me to pay 12%. What can I do? Where di i complaint against him?

    Reply
    • 7 lakh 60 thousand Rs still to pay builder.

      Reply
      • Ashish-Then you have to pay the GST on this as per the above post (8%). If he is not ready to accept it, then it is up to you to handle the case).

        Reply
  202. Hello sir , I have purchased a commercial property ( SHOP) on the name of my firm which comes under registered regular scheme. I have paid 12 percent gst and also received gst bill with builders gstin number . Can I claim the tax amount ( Input credit)?

    Reply
    • Gajendra-I am not an expert to guide business entities. Better to consult your consultant.

      Reply
  203. We are going to by new property under Pradhan mantri avas yojna but I don’t know how much charges i have to pay above actual cost of land.
    Such as stamp duty, GST etc

    Reply
    • Ravi-Regarding stamp duty and registration charges, contact your concerned registrar office. GST applicable rates are already explained in above post.

      Reply
  204. Hello Sir, I was booked an under construction flat on 03 August 2016 and done registered Agreement on same day with paying registration charges and stamp duty (Rs- 82200).

    1) This is my first house has total area 673 sq. ft. and overall cost of flat is 13,70,000/.

    2) I have paid 7,00,000/- to the builder in the month of April 2017 i.e. before the GST Launch and the remaining amount (6,70,000/-) has planning to be pay in March 2018 ,then it becomes ready to move.

    3) What will be the applicable GST on Flat?

    4) builder is saying they will charge 18% GST of the Total value of the Flat i.e. 13,70,000/-

    Please guide.

    Reply
      • Dear Sir, 12% of GST on Remaining Amount 7,00,000/- or 12% of GST on whole Amount 13,70,000/-

        Reply
        • Atul-Whatever the amount you paid or paying post GST era will be applicable as per GST rules.

          Reply
  205. Hi, I am booking an under construction flat. What will be the applicable GST on the apartment.

    1) This is my first house
    2) My income is 11 lakhs/year
    3) The carpet area of house is 850 sq.ft

    I am asking this because, I personally qualify for CLSS scheme under MIG 1 category. But builder is saying they will charge 12% GST and they don’t have details of new changes.

    Reply
    • Ajay-If you qualify and apply under CLSS, then the applicable GST for you will be 8%.

      Reply
      • Sir,
        Builder is asking for CLSS certificate. Please tell me where I will get CLSS Certificate.

        Reply
  206. Hi I had booked an under construction flat in June 16 through subvention plan. And loan for the same was disbursed on 2 December 16. Now I have some doubts:-
    1. Am I eligible for subsidy under PMAY as I have to start paying emi from 5 September 18.
    2. My building is comes under PMAY, I will be getting 4% benefit or not?
    3. How much is GST on amenities like PLC etc..
    Pls help me out..

    Reply
    • Anuj-I am not sure about PMAY applicability. You check with your bank. Regarding GST, it is already explained in above post.

      Reply
  207. Sir, I have booked flat in June and partial payment made after July 17 and the Possession may be given by Jun 18. I have also applied for PMY. What % of GST will be applicable?

    Pls help

    Reply
    • Jatin-If you are eligible for CLSS, then the applicable GST is 8%.

      Reply
      • Thanks you Sir for your valuable guidence. Now if I would eligible for class and builder will denied to take 8% GST. What should I have done. Which authorities will help me in this.

        Reply
  208. Sir, Is GST & Registration charges also applicable on amenities & corpus fund of a newly constructed flat in a gated community ???

    Reply
    • Puneet-GST is applicable on sale value which you mention in sale deed.

      Reply
      • Sir, In sale deed basic price of flat = Rs. 35 lakhs, Amenities = Rs. 4 lakhs & corpus fund = Rs. 1 lakh. So, total value of flat (basic price + Amenities + Corpus fund) = 40 lakhs. In this on which amount GST & Registration charges are applicable ?

        Reply
  209. Hi Basavaraj, I booked an under construction house in Nov 2016 and after initial payment applied for a bank loan in Feb 2017, which got approved in March and first disbursement done on April 1st, but I never applied for PMAY, and my registration is due in May 2018, am I still eligible to apply for that taking into account the timeline. Thanks, Vamsee

    Reply
  210. Sir
    I am ready to pay G S T and service tax to builder.but my builder is not agree to give tax invoice. Now what to do .
    Note, I already paid 85% of value .registration is pending

    Reply
    • Jai-Don’t pay unless he is ready to give invoice with proper GSTIN mentioned. Service tax is not applicable for you now.

      Reply
  211. Dear Sir,
    I have booked a under construction flat on February 2018 & agreement also done.the Registration will be done on May 2018 as per our builder.Please advise if the gst will be applicable for me..completaion certificate not yet received by builder.

    Reply
      • If i registy my property once received the completaion certificate by builder from Municipality then the gst will applicable? I also applied the loan under PMAY.please advise.

        Reply
        • Arijit-It is based on when you booked. While booking if the property is under construction, then you have to pay GST.

          Reply
          • Hi,

            But previously you have replied like at the time of registration completion certificate is there means no GST for my query in the comments section. But here you have mentioned like at the time of booking.

            Confused now, which statement is correct

            Reply
            • Basavaraj Tonagatti says:
              February 17, 2018 at 5:15 PM
              Gifton-If at the time of registration you got completion certificate, then there is NO GST.

              Reply

              Means when GST is not applicable? completion certificate at the time of registration or the time of booking (Given some token advance)

              Reply
              • Giftson-This is what I said that I am also of the opinion earlier that if completion certificate is there during the time of registration then no GST. However, it is clarified by few experts that the completion should be at the time of booking flat or at the time of first payment.

                Reply
            • Giftson-I too clarified and it is mentioned that at the time of booking. Otherwise, at the time of registration all properties were ready to occupy and easily no GST right?

              Reply
              • Yes I agree, but there are many cases registration will be done before getting completion certificate. Like projects will be handed over after 18 months but they will complete the UDS registration now itself.

                Reply
                • Giftson-In that case they have to show the proof from builder that while buying the property was fully ready to occupy (if IT AO ask for the same).

                  Reply
                  • Here in my case, builder has applied for the completion certificate and building is awaiting inspection. Now i have give a token advance before 10 days. As per builder. they will be getting the completion certificate by march 1 st week and i am planning to do the registration by april 1st week.

                    Now builder is telling, i need to pay GST since at the time of booking, they have not got the completion certificate.

                    But during April (at the time of registration), builder will be having the completion certificate. so that’s my query ” GST i need to pay or not”

                    Reply
                    • Giftson-Yes you have to pay this is what I am clarifying you.

  212. Dear Sir,

    I booked an apartment in Aug 2017 for 49.2 Lacs plus 12% GST. I have already paid 45 Lacs to the builder (5 Lacs cash and 40 Lacs loan). I got subsidy under PMAY.

    I need to pay rest of the amount to the builder by mid-March and take handover. Please help me calculate the amount I need to pay to the builder.

    Thanks,
    Barry

    Reply
    • Barendra-Please refer the reduced GST rate effective from Jan to projects which are approved under PMAY. As per that the pending payment will be payable with that discounted GST rate.

      Reply
  213. Hello Sir.

    I’m about to buy a resale flat that is still under construction. i.e the first owner already registered the flat when it was still under construction. The flat is still 5 months away from completion. Will GST be applicable for me considering I’m the second owner? Can I do registration before completion?

    Reply
  214. Sir, I am planning to book flat on 1st march 2018 with 10% of token money. Builder is saying Occupancy Certificate (OC) will be given to project in april 2018. I will pay balance amount to builder after OC issuance. And than i will go for registry. Will GST will be charged on transaction as i am purchasing ready to mover property but booking is being done before OC. Please clearify this particular case. Also what if builder not agree for this.

    Reply
  215. The Press Information Bureau link shared by you suggest that changes are with effect from 25 Jan 2018. So, wanted to understand what makes you say that the 8% reduced GST rate is applicable only from 01 April 2018 onwards and not from 25 Jan 2018?

    Reply
  216. Dear Sir,
    I have booked a flat in 2011 and paid the 95% amt. on booking . The flat was ready for possession in December 2016.
    We have to pay 5% rest amount at the time of possession/registration. Now the builder is asking us 12% GST on the
    remaining 5% . Pl advise what he will charge either 12% GST or Nil GST.

    Reply
  217. Hi Basavaraj,

    I sold a flat in Oct-2015, and reinvested the long term capital gain in a new flat (independent builder floor) in May-2016 for a total consideration of 1.8 cr. I claimed the capital gain benefit under income tax.
    Until April-2017, I have paid 1.23 cr and the balance 57L is to be paid with a bank loan.
    The flat is now complete and CC has been received. I would be getting the registry done for it in April 2018. And pay the balance 57L then.

    Am I liable to pay any GST on this?

    Thanks!

    Reply
    • Sidharth-If it is ready to move in property, then GST is not applicable.

      Reply
      • Yes, it’s ready to move in. I will be taking the possession on the day of registry.

        Reply
        • Sidharth-Then as per the rule, the ready to occupy properties not comes under GST.

          Reply
  218. Dear Sri Basavsraj,

    I am talking with lodha about a 3BHK under construction flat. They are not ready to give GST rate of 8% stating its a premium property with price above 1 Cr and Carpet of around 100 sq m. I am eligible for PMAY under CLSS MIG 2 category.

    Based on the above press release by Ministry of Finance, I am eligible for CLSS(PMAY). However the builder is not clear on ho GST will be 8% offered by him.

    So I want to know who offers the subsidized rates of GST? Banks or Builders? Builders seems not to be aware of the situation and they are not ready to change.

    Is there a mechanism where I can complain and ensure that they comply?

    Regards,
    Ashish Thakkar
    90040 94561

    Reply
      • Thanks for quick response.
        However, I spoke to a CA who says that the reduced GST is only for houses under affordable category where there is a ceiling of 50(rural)/65(urban) Lacs.
        Property above that amount is not considered affordable and hence would attract higher GST at 12% and not 8%.

        Is this correct?

        Reply
        • Ashish-Refer the notification purely. Also, I explained to whom this reduced GST is applicable.

          Reply
  219. Dear Sir,

    I bought an apartment in the year of 2016. The property is under construction and will be handed over this year.
    In 2016, Builder collected from me 95% advance payment with service tax in order to provide 10% rebate on the advance payment. However, after GST rule came into force, Builder is asking me to provide differential between GST and previously paid Service Tax on the construction linked portion which was completed after 1st July 2017.
    Is such additional claim due to legitimate, while the Builder have already collected Service Tax on 2016 itself?
    Do I need to pay Registration fees? at what rate?
    How Can I get Input Tax Credit?

    Kindly provide your valuable guidance.
    Thank you. Best Regards

    Reply
    • Anup-He can’t ask for GST now for the payment which you made before GST regime.

      Reply
  220. Hi,

    I have booked one flat by giving 10% of the total cost of property. Flat is almost ready to move in, builder has already applied for completion certificate and it seems completion certification will be obtained by Feb 2018. In this case we need to consider this as ready to move in or under construction? As per builder commitment, flat will be handed over by march 2018. This construction was started in 2015.

    Now, i have applied for loan under CLSS scheme for the remaining amount and i have planned for registration by April 2018.

    So my query is what is the GST applicable for ready to move flat by now?

    Reply
    • Giftson-Refer my above post for GST applicability on ready to move flats.

      Reply
      • Noted, I need to consider my flat as ready to move in or under construction property as builder has applied for completion certificate but still not got it??

        Reply
        • Gifton-If at the time of registration you got completion certificate, then there is NO GST.

          Reply
          • Thank you, then I need to pay only 4.5% service tax if no GST?

            Reply
            • Gifton-Service tax for those transactions which are prior to GST regime.

              Reply
          • Is there any official government link that mentioned no GST for ready to move in homes (completion certificate obtained at the time of registration). Please share me the link since my builder is telling there is no rule like no GST for ready to move in homes..

            Reply
              • I checked with my builder they are telling at time of booking completion certificate was not obtained so you need to pay GST. But completion certificate will be obtained by March 2018 and I will be doing the registration by April 18. So it should be at the time of booking or registration. If it registration, kindly provide any government link for the same

                Reply
                • Giftson-There is no specific clarification other than what I shared in above post. Please refer the same.

                  Reply
  221. Sir
    I have purchase one under construction flat in a project in which the builder has asked to pay 6% GST. But according to ur blog i have to pay 12 %. Please clarify on this.

    Reply
    • Niraj-If the GST is less than the above-said rate, then I think your builder is compensating it on behalf of you!!

      Reply
  222. Hello sir
    I spoke to few senior CA about the same as GST is 8% under CLSS.
    As per them this is a proposal by GST dept to govt. But it’s not Ben sanctioned yet. And so there is no ammendment published by GST dept. AT PRESENT IT’S A SUGGESTION

    Reply
    • Amit-It is the Budget notification which will be applicable from 1st April, 2018.

      Reply
      • Hi,

        So it means we need to do registration after April 1st to avail 8 % GST under CLSS scheme? or we can do registration now itself. I agree with Mr.Amir since my builder also informed the same.

        Please clarify

        Reply
        • Giftson-This is the Budget 2018 proposal, which will come into effect from 1st April 2018.

          Reply
  223. Hi Sir,

    I have booked a 2HK flat in Sep 2017 in an under-construction project in pune . Till now I have paid the 20% amount of my agreement cost to the builder. Agreement is not yet done. This is my first home & come under MIG-2 group as per CLSS scheme. Could you please let me know how much % GST I have to pay on my agreement value to builder which is around 53L?

    Reply
    • Amit-You are applying for loan under CLSS, then the GST will be 8%.

      Reply
  224. Hello, Basavaraj, Thank you for sharing the amazing article with us. It is really helpful especially for one who are looking for buying new home. Totally agreed with the points you mentioned but I have a question as per budge-2018 is there any change in GST rate for under construction property in Rajasthan?

    Reply
  225. sir i have booked under constraction flat at mumbai on 20feb 2017 ded i have to pay gst till now regester has not done 2 how many %gst has to pay flat cost is 2700000 3 ded regester charged and gst has to pay difrently

    Reply
  226. Hello,

    I have booked UC flat in June-17 with total basic cost of 49.5 lacs and made payment of 35 lacks before 1 july. Remaining 14.5 amount is bank loan and disburses on 30 jan 2018.
    I have check with the bank about the CLSS scheme eligibility in my case and I am eligible for MIG – I.
    I have following query. please clarify on

    What will be GST percent 8% or 12% on 14.5 lacs I have to pay to builder now as I will be going to apply for CLSS after 25 jan but flat booked in June-17

    Thanks
    Bhavik

    Reply
    • Bhavik-If you are eligible for CLSS, then the GST rate will be 8%.

      Reply
      • Hi

        Thanks for reply. But builder is not agree saying govt has declared but don’t converted to Rule yet. what I should do in this scenario while negotiation with builder

        Reply
        • Bhavik-It is the rule and notification also. I know they never budge.

          Reply
  227. Hi I recently got price list for godrej in Bangalore and it includes 9%CGST , 9%SGST and 1%TDS. Plus all these are charged on basic price, plc, car park,club even advance maintenance. Can you help with right GST% and what all components it is applicable on.

    Reply
    • Chitra-The above rates which I shared are based on latest notification of Government. Please share the same with them for better clarification.

      Reply
  228. Sir
    I m book flat at katraj in 2016
    I pay amount of 13 lakh out of 22 lakh before 1 July 2017 gst applicable and I also pay vat service tax amount of 120868 on total agreement value 22 lakh and pending 9 lakh from bank disbursement after 1 July
    now builder demand for gst difference amont rs 50000
    So please help to know what is the real fact

    Reply
    • Gst difference mean
      Total agreement value 22 lac
      I pay amount of 13 lakh out of 22 lakh before 1 July 2017 and I also pay vat service tax amount of 120868 on total agreement value 22 lakh and pending 9 lakh from bank disbursement after 1 July
      now builder demand for gst amont rs 50000
      For the payment is disbuss after 1 July which is on 9 lac
      but I already pay vat service tax total amount on 22 lac

      Is it any GR regarding this issue

      So please help to know what is the real fact

      Reply
      • Sandip-As the payment is happening after GST applicability, even though you have paid service tax on full sale value (before GST), if there is any difference in GST and Service Tax on the payment which you have to pay post GST applicability, then for that PART only builder can ask for payment. But the builder can’t ask for the GST for the payment which you paid before GST applicability.

        Reply
  229. Hi,
    I have the same question as asked by Giftson. Could you clarify the same for me too?

    Reply
    • Naresh-Refer THIS Govt notification of the same. Builders play all games and this is one such game.

      Reply
  230. Hi Mr. Basavaraj,

    please suggest me if possible

    1- Recently we have signed an agreement on 30th Jan 2018 for under construction flat at Ahmadabad and paid 3lk amount on October 2017 and he provided slip of 267 k after deducting 12% GST. Now after 26th Jan it will be charged 8% instead of 12% under PMAY as i got news from somewhere?

    2 – Suppose that if any one taking home under general scheme from builder and deposited 12% GST under payment slab and in the last before registry he transfer(sale) the property any PMAY taken person, in that case hows GST will be applied because in PMAY its 8% applicable?

    3-Generally hows GST will be applicable in home purchase for under construction.

    a- is Gst will be applicable in last at the time of Registry ?
    b- is GST will be applicable with the payment slab wise because builder is asking slab based GST.
    c- Hows GST willbe applicable under PMAY and genral purchase?

    Please suggest .
    Thanks

    Reply
    • Suman-1) GST is reduced to 8% if you purchased the property under Credit-Linked Subsidy Scheme (CLSS). Refer above post properly to make sure that where you fall.
      2) You can’t switch to CLSS at last. But during apply for loan, you have to clarify and based on that your builder collect GST.
      3) It is as per (B).

      Reply
  231. If I buy a flat which is completed and ready to move after 1 july 2017 , whether gst will be applicable on such flat? and whether gst applicable on under construction flat?

    Reply
    • Rohan-Ready to move in flats are out of GST and this is what I clarified in above post.

      Reply
  232. Hi Basavraj,

    Can you please help me with the following query?

    I purchased an under construction property and till now, 95% has been paid( all of it was paid before 1st July, 2017). Now, its still under construction and i have not received it compketion or occupancy certificate yetfrom the buyer. But, I am planning to resale this property in this 95% completeion condition only. So, in this case, is a transfer of ownership of property possible ?? If yes, then buyer will have to pay GST only on ramaining 5% or whole 100% ??, I am confused because now it will be registered under new name.
    I know you already mentioned that GST should be applicable on remaining payment, but in this case it’s a transfer of ownership as well. So, can you please suggest the GST implications in this case ?

    Please let me know.

    Thanks,
    Suyash Srivastava

    Reply
    • Suyash-Transfer or ownership is possible if you all three parties (builder, you and the new buyer) agreed to the terms and conditions. In my view, GST for new buyer will be on full 100% (95% payment will happen to you post GST and 5% as usual under GST).

      Reply
      • Okay, but wouldn’t that be double taxation ? Because I have already paid 95% service tax but now, 100% GST is payable if property is transferred in under construction condition.
        Thanks,
        Suyash

        Reply
        • Suyash-It may be but you are selling to him an under construction property and hence buyer has to pay right?

          Reply
  233. Need some clarification in Real Estate GST
    I have read from your blog that GST reduced to 8% from 12%
    Now am planning to book one apartment in chennai, which is almost near completion handing over by march
    So what would be the GST applicable now? Since when I enquired last week they told 12% but that I didn’t read this information
    Also, builders confirming that they haven’t received any official order on reduction in GST
    So 8 %GST already in place, or it will take time?

    Reply
  234. Can you provide any government gazette notification or order regarding 8 percent gst on under construction property for the buyer availing CLSS scheme.
    Another question is how builder can differentiate between the buyer with CLSS and Without CLSS because it is only possible with lending institution.
    Suppose a buyer has applied for CLSS benefit but he has not got it till now,in that case what document is needed to be submitted to builder to get gst benefit of 8 percent.
    Please highlight on the above issues.

    Reply
    • Arindam-Refer THIS link. It is not builder who has to decide, but it is you who has to prove that you are buying property under CLSS. Based on that you have to pay this reduced GST. Your proof of submission for loan under this CLSS and the acceptance of the loan from the bank is the proof.

      Reply
  235. I bought under construction flat in Jan 2015 and paid service tax whenever there is demand from the builder. Now 95% of the amount paid to the builder with service tax and still I didn’t get the possession of flat which might get in March 2018.

    The builder is demanding 12% GST on remaining amount and 70K maintenance amount separately.

    Is it right to charge GST of 12% on the remaining amount and separate GST for maintenance amount?

    What should I do if builder refuse to waive the GST from last demand letter?

    Reply
    • Amar-I am not sure about maintenance charges and applicable GST on that. But regarding the dues and GST on it, yes you have to pay.

      Reply
      • Finally, Builder got OC on 31st March 2018 from PuneMRD, now builder asking 12% GST on remaining amount.

        When asked about GST benefit, he said if we get the benefit we’ll pass it to you but they don’t know when?

        How can I track this? As all the purchase made before July 2017, is that in builder’s hand to pass benefit or not?

        Reply
  236. Hi Sir,

    I’m planning to by a flat at chennai which was completed before GST. Few buyers who bought before GST, bought it without paying GST.

    1. I’m planning to buy 1 flat in the same building now, the builder says, as i’m buying it now, GST will be applied for Registration made now. Is this True?

    2. What is the solution? If GST is not applicable, what is the rate of TAX for completed flat?

    3. Will the purchase be considered as Resale flat? Is it is a Resale, will the Builder be considered as 1st buyer?

    Kindly help me.

    Reply
    • Krishna-1) 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.
      2) There is no service tax or GST in your case.
      3) Please read my post properly.

      Reply
  237. Sir, I want to know the GST rate on the first buyer of flat whether it is 12 percent or 8 percent …

    Reply
      • Thanks for the clarification.

        Reply
  238. I discussed with my builder and they are telling me that they have already paid the 12% gst to the govt. and unless they don’t return it , I will not get my refund . Is there any other way to get my refund.

    Reply
  239. I have paid 75% of the value for a under construction project with 12% gst. Now the new gst is at 8%, will I get a refund back.

    Reply
  240. Sir,
    I buy home and builder makes land agreement and construction agreement, I have to pay 4.9 % Stamp duty in Gujarat + 1 % registration Charges on Land Agreement Cost, And I have to pay GST on construction agreement, but builder is asking GST on Land Agreement also..What is to be done now… Before purchasing the house Land Agreement And Construction agreement is Legal ?? Sale Deed and and Construction agreement is the same or different ?

    Kindly give your suggestion..

    Reply
    • Ketan-As I pointed above, the GST will not be applicable on land value.

      Reply
  241. Sir,As per new budget any notification received on gst for purchasing of under construction property.

    Reply
    • Priya-There is no change in GST Rates for Real Estate. Hence, the above post holds good for FY 2018-19 also.

      Reply
  242. Before 30 June’17, i have paid 50% of total sale deed value with @4.5% S.Tax.Rest through LOAN from SBI, disbursed on 31st July’17.Loan applied 23rd June-17.Now around 2.85(12%-4.5%)lac extra bunden has to be absorbed.Any possible way to get rid off.

    Reply
  243. Hi Basavraj,

    1) Acc to “GST on completed Flats/Property or ready-to-move-in property”, for ready to move-in Flats/houses, GST isnt applicable. By this you mean resale of the property??

    2) I am planning to buy a row villa from the builder. The builder hasn’t done tiling, sanitary or other works, it is just a structure, and he has a given us an option where we can do all that by ourselves (sale in as in condition) or he can do that work and sell it to us. Will 12% GST be applicable? As it will be a ready to move in property

    Reply
    • Abhilash-1) Yes for resale also GST will not be applicable.
      2) If it is considered as ready to move in, then it will not comes under GST.

      Reply
      • 2.1)for your answer to 2nd point, there will be no GST applicable, but the older taxes will be applicable?? Or we dont have to give any additional tax to the builder.

        2.2) To be considered a Ready to move in flat, the builder should have a certificate.Right?

        Reply
        • Abhilash-1) As the selling happening today and based on current GST law the taxation is NIL.
          2) Yes and he has to declare that.

          Reply
  244. GST have been reduced to 8%? is it true

    Reply
  245. Hi…if my account is debited for neft payment to Developer on 30 Jun 2017 but developer receives payment on 1st July 2017 due to neft delay, then shall i laible to pay GST for the NEFT amount.

    Reply
  246. I am booking an apartment in a recently launched project in Feb 2018. Agreement is pending. Builder is charging 18% GST on the construction cost (Rs. 40 L ). Is this correct or is it 12%.

    Reply
      • Hi Basavaraj. Still confused. The image above stated 18% GST on 2/3 of the property value, 1/3 deemed as land value. Please clarify

        Reply
        • Jaga-Just check the image and above post. It clearly mentioned that it is 12% not 18%.

          Reply
  247. As you said no gst for ready to move flat but devloper is asking 18% gst on extra fees like, legal fees,mutation of flat,ht line ,maintenance cgs,club fees and generator inst etc. Pls advise. If not applicable pls quote the specific section/laws. Appreciate your kind adv.

    Reply
    • Amit-Please refer the above image, which is the clear notification by concerned Govt authority.

      Reply
  248. Sir,
    Ihave purchased a under construction flat from GODREJ PROPERTIES LTD and they are charging me 18% GST without

    any cost in reduction of my flat. IS GST 12 OR 18 % .

    Reply
    • Bhattacharjee-It MUST BE 12% but not 18% as per recent clarification. You have every rights to question it.

      Reply
      • Thanks.

        Reply
  249. This one issue of GST on residential property has been a big headache due to lack of clarity and inferences.this article very clearly spells out the entire issue and after reading this the apprehensions are done away with.May be during and after the budget during discussions on the budget some more clarity may emerge.It is in our own interest as buyers of properties we keep our eyes and ears open to gather all the relevant information.

    Pichai

    Reply
    • Pichai-I think now there is no confusion after the clarification.

      Reply
  250. I want to purchase a new apartment. Apartment cost is Rs. 2500000 . How much amount of GST i need to pay for builders. For example i want to take a 1100 sq.feet and government rate for square feet cost is 1200. As per government rate for this flat is:Rs.1320000(1200×1100) . So i can pay GST is 12% of Government rate value(1320000) or apartment cost value i.e. 30000 (2500000×12%).

    Reply
  251. Hi Basu,

    Mine is under construction flat .
    If the builder is bifurcating the GST of 12% into 6%-6% and giving the 6% from his side letting me pay the other 6% ,is this considered to be the input tax credit benefit given to me , the customer .

    However the implementation even of GST 6% is increasing my previous service tax of 4.5% by 1.5% so disbursement is still higher for me correct? So where is the benefit of input tax credit to the customer?

    Please explain.

    Thanks,
    Vinit

    Reply
    • Vinit-The benefit available depends on how much your builder want to provide you.

      Reply
  252. GST Rate —– Realstate

    Reply
  253. Dear Sri Basavsraj,

    I am buying a new flat. I had signed the agreement with the promoter in May 2017 and paid a part at that time. Now the flat is on the verge of completion. Shall I have to pay GST? I have one more question. I took home loan from bank. If you can throw light on the procedure to get CLSS under Pradhan Mantri Awas Yojana.

    Reply
    • Avik-If any payment you did post GST implementation, then you have to pay the GST. It is a lengthy topic. Let me cover that in a different topic about CLSS.

      Reply
      • Thank you for your quick response. But, how the builder shall pass the effect of 100% Input Tax Credit to me so that the price of the flat does not increase? Otherwise how can I buy a flat of ?33 lac and pay 12%GST on that?

        Reply
  254. SIR,
    KINDLY CLARIFY THE FOLLOWING DOUBTS:

    1. IS GST APPLICABLE FOR PURCHASING A OLD RESIDENTIAL HOUSE?

    2. IF WE BUY A SITE AND CONSTRUCT A HOUSE THROUGH A CONTRACTOR, WHETHER GST IS PAYABLE?

    3. IS GST APPLICABLE ONLY FOR APARTMENTS AND NOT FOR PURCHASE OR CONSTRUCTION OF INDEPENDENT RESIENTIAL BUILDING?

    Reply
    • Ravi-1) As I already explained in above post, GST is not applicable for old residential houses.
      2) Yes, from contractor end as he is rendering the service of construction to you.
      3) GST is applicable for all types of real estate but based on the conditions I explained above.

      Reply
      • Dear Sir,.

        Booked a flat in Mumbai on July 18 for 1.12 CR and 44 sq mtrs underconstruction and paid part amt with 12 % GST. From April,19 it will be 8%.
        Want to know if it falls under affordable housing as it’s less then 60 sq mtrs

        Reply
          • Dear sir, i booked 1060 sq ft under construction flat in sep 2018 and flat price is 20 lakh and i paid 60% of amount during booking. Now flat is ready in 2020 and builder asking for 12% gst. Plz advise that as per rule we hsave to pay gst 12 or 5% during resistry.

            Reply

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