GST rate on real estate or under construction property purchase 2020

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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:-

More To Explore

802 Responses

  1. Hello sir,

    I have booked the flat in surat in 2017.
    Still it is in under construction.
    I have paid 5.5 lakhs as down payment in 2018.
    For the remaining amount I have taken home loan.
    Rs. 10 lakhs was disbursed by bank to the builder as part payment on 26th March 2019.
    Rs. 8 lakhs has been paid after 1st April 2019 by the bank to the builder as part payment.

    Flat comes under affordable home category.

    Now builder is saying that I have to pay 8? GST for payments made before 1st April 2019 and
    1%GST for payments made after 1st april 2019..

    The registration is still pending

    Please can you tell me,
    Is the builder charging proper rates as per the rules?

    Please reply
    Because my possession date is after 2 months.

    Thanks in advance

  2. Hello Sir ,
    I purchased flat 400 Sq.ft (39 Sq. Meter ) in Virar on 2015 . Agreement date is on 28 March 2017 & puzzation may be on April 2021 then what will be gst charges paid to builer .
    Please clarify

  3. Dear Sir,
    Thanks for this informative article: Requesting you for more information on the affordable homes criteria.
    1) Our purchase is an apartment of < 60m2, with overall consideration including taxes of < 45L in Mira Road area of Mumbai. (Criteria as sourced from other online sources for affordable homes)
    Does this meet with the Affordable homes criteria or does it need to be classified as a CLSS scheme home only for the affordable
    criteria tag and reduced GST of 1%?
    2) Builder has charged possession charges as Maintenance at 6/ft2 for 1 year and in addition, Legal charges (10000), Electricity meter and water meter(40000), Society formation charges (10000) Infrastructure development charges (116250), Club charges(38750) and lastly included a GST @ 18% on all above charges.
    My query:
    1) Is there a maximum ceiling amount for each header above?
    2) Is the GST rate @ 18% for all headers above?

  4. Hello sir, planning to buy a flat ready to move from land lord share, which had recently got possesion certificate, he is asking 5% gst for the value of sale deed. Is gst applicable? Please let me know

  5. Basu Sir,

    I purchased prelaunch flat in 2017 for 93laks and they charged 18% gst and installment was devided into 10, I am paying last installment in 2021 March. Now as gst is reduced to 5% and my flat is constructed and registered only in 2021, why should I still be paying 18% gst ? Builder is still collecting 18% gst. Even on advance maintenance , he is collecting 18% gst, when per.emi would come less than 7.5k per month. Please help me clarify.

  6. Sir, I have booked under construction flat in Guwahati , Assam on November 2018 @ 25 lac under PMAY Scheme ( loan 20 lac) from LICHFLTD and registered on January 2021 . What will be my GST ? Please reply.

  7. I Purchased a under construction flat in 2018 and got it registered in July 2018. IHave paid full Amount. Flat is Still under Construction. GST will be Applicable 12% or 5%.

  8. SIR,

    Pls clarify the following doubts

    GST will be calculated on Market price or agreement Vale of property.

    I had booked flat in 2019 under construction. as per agreement value (registration not done yet) flat cost is 44.40 Lacs and now market vale is 50.00 Lacs. So GST is 5% or 1%. ??

    GST is applicable on Flat cost and Other charges amount or only on flat cost amount?

      1. Sir,

        We are eligible for CLSS (1st home) then also builder taking 5% GST. He is saying that GST is applicable as per readyreckoner rate. As per readyrekoner rate Flat Cost is Rs. 49.50 Lacs but actual Flat cost is Rs. 40.40 Lacs.

        Pls suggest us GST will be 5% or 1 %.

  9. Dear Sir,

    I made prelaunch purchase of residential apartment space of 2500 square foot from a builder in Bangalore in the year 2013 and made the full payment of Rs. 80 lakhs for the entire apartment cost including PLC, Car park, maintenece advance etc. No tax was claimed by builder or paid by me at that time. A Memorandum of Understanding was signed by builder with me in early 2013 which said service tax and VAT is payable on the agreement for sale at applicable rates.

    The builder started construction of lower 20 floors some time in year 2018 as he had permission to construct only those floors at that time. Now the builder has received approvals for construction (in end 2020) of the top 10 floors, where my flat is in 22nd. floor. The actual construction is just at ground floor level in my building though other 5 buildings have reached 4 th. floor in this 6 building complex. They have sent me a demand note for GST @ 12 % on the full amount I paid and asked me to sign a terms and conditions page and says agreement for sale will be signed later.

    Incidentally I have to get a refund of about 8 lakhs from them due to different PLC, floor, etc. as what I paid was of higher value than what I am getting now.

    Now my questions are as follows:

    1. Is GST applicable in this case and if so at what rate?

    2. Will the GST be on 80 lakhs or 72 lakhs (80 – 8 refund) ?

    3. If GST is applicable, Do I have to pay now or at handover or at at what stage/s?

    4. If he forces me to pay 12% how can I ensure I get credit for ITC?

    5. If GST is not applicable, is any other tax (e.g. VAT, Service, Sales tax) applicable and again on what rate and on what amount and when?

    6. Now the builder is calling the money I paid as EMD while in MoU it is clearly mentioned as ‘Prelaunch advance full payment amount for purchase of 2500 sft apartment space’ and I am defined as a purchaser. Is there any legal difference betweeen EMD and expression in inverted commas above and is that a serious matter and which one is beneficial to me?

    Thanks a lot for your kind guidance and help.

  10. Hi sir
    I have purchased a semi finished flat in Feb 2020… agreement of sale consideration is Rs 43,00,000.sale deed is done on Rs 20,00,000 and remaining amount Rs 23,00,000 shown as work order….registration is done….Now builder is asking 5%GST on sale consideration amount…..my doubts are
    Should I pay gst on
    1.total sale consideration amount
    2.only work order amount
    3.if total sale consideration amount then 1/3 is land value.then must be reduced or not….
    4. Am I eligible for affordable home…bcz flat cost is less than 45 L & undivided share area is below 60m….

      1. Hi sir
        Semi finished flat:(53 sq yards is my undivided share)
        Total flat cost is 43,00,000
        Sale deed is 20,00,000
        Work order is 23,00,000
        Now builder is asking 5%gst on total cost of flat…..
        Do I have to pay gst on which amount???

  11. Hi sir, I purchased flat on sept 2019, Dec 2019 possession date registered on RERA. They mention building 95% completed.Sales person said they will give possession in dec 2019. Did registration in sept 2019 as they said they will give possession in dec2019. I received demand later on dec 2020 very lat and I have paid full payment. I got my possession jan2021.they provided possession one year lat.But now after possession they demand gst amount.so what i do?

    Thanks,
    Karan

  12. Hi sir,
    I purchased 1 bhk flat in thane in feb 2020, flat cost is 4547000 and i paid stamp duty by 6%, builder has applied 8% gst around 363000,does it correct.
    Or i should pay the GST by 5%.

    The project it is in under construction and possession will be in june 2021.

    Please advise me.

  13. Hi sir,
    I had booked under construction flat in 2016 and my flat price is 19 lakh and I paid him the amount step by step till 2018, but in May 2018 he told us to do a registry of flat because 90% was completed we paid him the full amount of flat in May 2028 but the building was still under construction and he told us to pay 12% GST which we are not paid him because of under construction. and Dec 2020 flat is ready now so how much GST I have to pay him 12% or 8% or 1%.

    the last question I do no affordable my flat is under affordable or not, could you plz help on this I read one blog they said under 45 lack flat is affordable.

  14. Hello Sir,
    My Self Vrishali Raut
    Thanks for the GST article.
    As per your article, I discussed with my builder to charge lower GST 1% for affordable homes.

    But builder said that, my wing is in under construction and this wing is gone with old effective rate (Not the new GST rate). i.e. he submitted letter to jurisdictional commissioner for old rate GST.

    I also observed that he is charging 1% GST to new flat buyer (2020). I am an old buyer (2018)
    so I am little bit, whether I pay 8 % or 1 %.

  15. Hello sir,

    I have booked the flat in pune in 2017.
    Still it is in under construction.
    I have paid the amount step by step according to slabs.
    Flat comes under affordable home category.

    I have paid 15 lack after 1 april 2019.
    According to my knowledge for new GST rule,
    Builder must charge 1%GST for part payment after 1st april 2019..

    But builder is charging 8% GST..

    Please can you tell me,
    What is GST rate for part payment after 1st April 2019???

    Please reply
    Because my possession date is in next month…

    Thanks in advance

  16. Hello Sir,

    Your valuable suggestions always helped me. I need your opinion regarding this same thread.
    I purchased a Flat from builder in Pune and its sale deed was singed in March 2016. Till April 2019 whatever payment I did to builder it was changed as per Service Tax around 4%. Now due to some issues builder delayed possession of said flat and he is ready to hand over it to me by Nov 2020.
    Now he is charging me 12% GST on my pending dues (around 5 Lakhs). Still my builder has not got completion certificate and most of my flat interior construction work like electrical, plumbing etc. is pending. When I told him that GST should be 5% he is saying that construction is done so we will charge 12%.

    Can you please tell me how much % GST builder should change me in my case 12% or 5%
    If it is 5% but still he force me for 12% what are my options to convince him?

  17. Hi sir
    I live in Anand city of Gujarat state. I have taken a house here, with a plot area of ??136 sq.m. and construction is approximately 205 sq.m., which was registered on 11/09/2018. The price is 2100000 paid. The builder wants 18% gst from me. So how much gst do I have to pay as per gst on 01/04/2018? And I am in this building. Benefited from ClSS scheme.

  18. 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

  19. 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?

  20. 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.

  21. 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.

                  1. Sir, can i have your contact number please. I am missing to make u understand some points. Need to now do registration. Please help

  22. 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

  23. 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 ?

  24. 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

      1. 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?

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

  26. 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?

    1. 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

  27. 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%??

  28. 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!!

  29. 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

  30. 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?

  31. 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.

  32. 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 %?

  33. 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.

  34. 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

  35. 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.

  36. 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?

  37. 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.

  38. 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

  39. 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

  40. 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?

  41. 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.

  42. 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

  43. 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?

  44. 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

  45. 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?

  46. 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.

  47. 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.

  48. 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 ??

  49. 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.

  50. 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.

  51. 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

  52. 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 gst@12%.
    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?

  53. 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

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

  55. 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.

      1. 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?

          1. 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?

  56. 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.

  57. 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

      1. 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

      1. 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

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

  59. 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.

  60. 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

  61. 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

  62. 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!

    1. 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.

  63. 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?

  64. 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.

    1. 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.

  65. 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.

  66. 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?

  67. 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.

  68. 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.

      1. 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.

  69. 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.

    1. 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.

  70. 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% ??

  71. 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

  72. 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

  73. 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!!!

      1. 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???

  74. 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.

      1. 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

  75. 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

  76. 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.

  77. 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

    1. 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.

  78. 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?

  79. 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.

  80. 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

    1. 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.

      1. 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

          1. 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

  81. Sir,
    I had book the under construction 2 bhk flat in april 2017 at Nasik, Maharashtra and registration is completed Sep 2018 with GST@12% + Stamp duty@6% + Registration charges@1%. 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) + GST@12% + Stamp duty@6% + Registration charges@1%.

    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

      1. Sir,
        I can ask for refund/readjust if the GST will be 5 % applicable and Builder has not given any receipt of GST@12%.

          1. 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

  82. 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.

  83. 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??

  84. 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??

  85. 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?

    1. 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.

      1. 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?

  86. 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%.

  87. 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

    1. 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.

  88. 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

  89. 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.

      1. 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?

  90. 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.

    1. 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.

  91. 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.

  92. 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%.

  93. 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.

    1. 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.

  94. 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 .?

    1. 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.

  95. 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?

      1. 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?

  96. 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?

    1. 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.

      1. 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

  97. 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

  98. 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.

      1. 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 ?

          1. 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.

      2. 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.

  99. 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

      1. 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%.

  100. 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.

  101. 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.

  102. 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

  103. 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

  104. 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

  105. 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

  106. 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.

  107. 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.

  108. 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

  109. 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..

  110. 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.

  111. 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!

  112. 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

  113. 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?

  114. 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?

  115. 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.

  116. 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

      1. 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.

  117. 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.

  118. 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?

  119. 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.

  120. 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

  121. 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.

  122. 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%.

  123. 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?

  124. 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??

    1. 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.

  125. 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

  126. 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.

      1. 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.

          1. 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.

  127. 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

      1. 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.

  128. 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?

  129. 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

  130. 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.

  131. 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.

  132. 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

  133. 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/-.

      1. 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??

  134. 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.

      1. 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..

          1. 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.

  135. 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.

  136. 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.

      1. 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.

  137. 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,

    1. 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.

  138. 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.

          1. 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

            1. 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.

              1. 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 ?

                  1. 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.

                    1. 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.

                  2. 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

  139. 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

      1. 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?

  140. 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.

  141. 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

          1. 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

  142. 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.

    1. 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.

      1. Hi Basavaraj,

        Thanks for prompt response.

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

          1. 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.

            1. 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.

  143. 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

      1. 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.

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

  145. 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?

  146. 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

    1. 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.

      1. 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?

  147. 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 ?

  148. 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

      1. 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.

  149. 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

    1. 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?

      1. 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

        1. 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.

  150. 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 ?

  151. 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.

  152. 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.

  153. 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?

          1. 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.?

              1. 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 .

    1. 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.

    1. 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.

  154. 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

  155. 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?

  156. 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%?

      1. 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?

  157. 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

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

          1. 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)

              1. 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.

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

    1. 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

        1. 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.

      1. 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?

  159. 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

  160. 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

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

  162. 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.

  163. 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 .

  164. 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

      1. 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?

          1. 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%?

  165. 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

      1. 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?

  166. 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

      1. 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?

          1. 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

  167. 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.

  168. 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.

  169. 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?

    1. 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).

          1. 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?

  170. 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>

  171. 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.

  172. 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

    1. 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.

      1. 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.

          1. Thank You,

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

  173. 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?

  174. 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??

  175. 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?

  176. 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

  177. 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.

  178. 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?

      1. 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.

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

  179. 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

  180. 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.

      1. 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.

  181. 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.

  182. 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.

  183. 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 GST@12% 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

      1. 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

  184. 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)

  185. 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.

  186. 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.

  187. 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.

  188. 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

      1. 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

  189. 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

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

  190. 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.

  191. 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% ?

      1. 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?

  192. 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 .

  193. 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)

  194. 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

  195. 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?

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

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

                    1. 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?

  196. 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 ?

    1. 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%.

  197. 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

    1. 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%.

      1. 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

  198. 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 ?

    1. 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

      1. 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

  199. 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 ?

          1. 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.

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

  201. 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.

  202. 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?

  203. 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??

  204. 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

      1. 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

  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 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.

  206. 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.

  207. 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..

  208. 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?

  209. 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

  210. 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?

  211. 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)?

  212. 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

  213. 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.

  214. 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.

  215. 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..

  216. 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

      1. 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.

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

      1. 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 ?

  218. 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

  219. 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