Author compiles recent changes in GST applicable wef 01.04.2019 related to builders and developers- It explains changes Where GST OF 1%/5% Is Opted For Ongoing Project, Where Existing 8% Is Continued With ITC, Impact on New Projects and amendment in rules regarding Input Tax Credit in summaried form.

A. WHERE GST OF 1%/5% IS OPTED FOR ONGOING PROJECT

S. No. Compliances / Amended Provisions
1. Builder can opt for, 1% GST for affordable housing and 5% GST for other residential project, without availing ITC
2. GST 1% / 5% is the effective rate after deducting 1/3rd  towards value of land.
3. An Intimation in Annexure IV shall be submitted to the jurisdictional commissioner on or before 10.05.2019.
4. Invoice can be issued before submitting the intimation with the GST rate opted.
5. If the intimation is not given on or before 10.05.2019, it is presumed that the builder has opted for 1%GST / 5% GST without ITC.
6. GST 1% or 5% shall be paid in cash only. Balance in ITC cannot be used to pay this.
7. In case the carpet area of commercial premise in a residential project is not more than 15% of the total carpet area of the project, then the same shall be treated as residential project and eligible for concessional GST rate of  5% on the commercial premise also.
8. Builder opting for reduced GST rate of 1% / 5% shall reverse the ITC proportionate to the supply after 1st April as per the formula notified.
9. The reversal of ITC shall be done project-wise.
10. A project shall mean, a Real Estate Project (REP) or a Residential Real Estate Project (RREP) in which carpet area of commercial premise is not more than 15%, as per RERA.
11. Booking of apartment on or before 31.03.2019 means complying the following 3 conditions, namely;

a. Part of supply of construction service should happen.

b. Part of consideration should be credited to bank account

c. An allotment letter or any other document is to be issued confirming the booking.

12. Where it is opted for concessional rate of GST 1% / 5%, the 80% of the procurement of goods and service* should be from the registered supplier.
13. In the event, the above procurement* is less than 80% in a financial year, the GST at the rate of 18% shall be paid on shortfall under RCM. Such liability shall be added to the output liability of any month not later than June of the subsequent year.
14. *For the purpose of computing 80% Services by way of development right, FSI, Long term lease of land, Electricity, HSD, motor spirit and natural gas shall be excluded.
15. Where the above shortfall includes purchase of cement from un registered supplier, the GST rate shall be 28%.
16. Where the above shortfall includes purchase of capital goods, the GST rate shall be the rate applicable to such capital goods.
17. Where cement is procured from un-registered person, the GST under RCM shall be paid in the month in which cement is procured.
18. Project-wise account of inward supplies  is to be maintained for  supplies from registered suppliers and unregistered suppliers. The such details are to be electronically submitted in the portal  before 30th of June of next year in the prescribed form.
19. Builder (developer) shall pay GST on flats sold to the land owner at the same rate. Time of supply shall be the receipt of completion certificate. The tax so paid shall be eligible for ITC if the land owner further sells the flats other buyers.
20. The ITC not availed shall be reported every month in form GSTR 3B [Row No. 4(D)(2)]
21. Where premises are not fully sold before the receipt of completion certificate, the builder shall pay GST  at the rate applicable to the project on the development right, FSI, long term lease of land on value proportion to the premises unsold on the date of receipt of the completion certificate. The value of similar premises sold (minus 1/3rd towards land value) at the nearest point of time shall be considered for the valuation of unsold portion of the project.

B. WHERE EXISTING 8% IS CONTINUED WITH ITC

S. No. Compliances / Amended Provisions
1 Builder can opt to continue the existing rate of 8% GST for affordable housing and 12% GST for other residential project, with ITC
2 An Intimation in Annexure IV shall be submitted to the jurisdictional commissioner on or before 10.05.2019.
3 Invoice can be issued before submitting the intimation with the GST rate opted.
4 If the intimation is not given on or before 10.05.2019, it is presumed that the builder has opted for 1%GST / 5% GST without ITC.
5 On going project means which meets all the following conditions, namely;

a. Commencement certificate in a project is issued and certificate from an architect/chartered engineer/licensed surveyor is obtained certifying that project has started on or before 31.03.2019

b. Where commencement certificate is not required, the certificate from an architect/chartered engineer/licensed surveyor is obtained certifying that project has started on or before 31.03.2019

[for (a) and (b) above, earthwork for site preparation for the project has been completed and excavation for foundation has started on or before 31.03.2019]

c. Completion certificate has not been issued or first occupation of the project has not taken place on or before 31.03.2019

d. Booking has happened on or  before 31.30.2019.

6 ITC is to be reversed every month on the basis of estimated sale after completion of the construction.

C. NEW PROEJCTS

S. No. Compliances / Amended Provisions
1 All new residential project which is commenced on or after 01.04.2019 shall attract 1% GST for affordable residential apartment and 5% GST for other residential apartments without ITC.
2 Affordable Residential Apartment means residential apartments with carpet area not exceeding 60sqm in metropolitan cities or 90sqm in other places for which gross consideration does not exceeds Rs. 45 lakhs.
3 For computing this Rs. 45 lakhs, the consideration for the flat, amount separately charged for the land / lease rent if any and amount charged for preferential location, development charges, parking charges, common facilities charges etc shall include.
4 GST 1% or 5% shall be paid in cash only. Balance in ITC cannot be used to pay this.
5 In case the carpet area of commercial premise in a residential project is not more than 15% of the total carpet area of the project, then the same shall be treated as residential project and eligible for concessional GST rate of  5% on the commercial premise also.
6 A project shall mean, a Real Estate Project (REP) or a Residential Real Estate Project (RREP) in which carpet area of commercial premise is not more than 15%, as per RERA.
7 In case of commercial constructions, ITC is to be reversed every month on the basis of estimated sale after completion of the construction.

D. AMENDMENT IN RULES REGARDING ITC

S. No. Compliances / Amended Provisions
1 In case of demerger, the ITC shall be  apportioned in the ratio of value of entire assets of the business, whether or not input tax credit has been availed thereon.
2 In case of builders, the ITC exclusively attributable to taxable supply (T4) shall be zero since the inwards supplies are used for taxable supply (sale during construction) as well as sale after completion of construction.
3 ITC exclusively attributable to activities other than business (T1), ITC exclusively attributable to exempt supplies (T2), ITC restricted u/s 17(5) (T3) and ITC exclusively attributable to taxable supply (T4) shall be determined and declared at summary level in GSTR 3B.
4 In case of construction service (sale of under construction premise) apportionment of ITC under rule 42 shall be made every month project-wise.
5 The apportionment shall be made on the basis of estimated carpet area of flats which may be sold during construction and estimated carpet area which may be sold after  completion.
6 The eligible credit shall be computed under rule 42 shall be computed separately for CGST, SGST, UTGST and IGST and declared in GSTR 3B or form GSTR DRC-03.
7 The final reversal of proportionate ITC shall be computed at the end of the project for the entire project from the commencement of the project or 1st July, 2017 whichever is later, to the completion of the project. This shall be done before filing the return for Sept following the end of the financial year in which the project is completed. If the eligible credit is more than the already availed, the differential credit shall be availed and if the eligible credit is less than the availed, then the excess credit taken shall be reversed along with interest from 1st April of the succeeding year till the date of payment.
8 Where any input or input services are used for more than one project, the ITC on the same shall be distributed to each project on a reasonable basis.
9 The eligible and ineligible credit on capital goods shall be declared in GSTR 3B
10 In case of construction service, ITC on capital goods shall be availed on proportionate basis as the capital goods are commonly used for the supply during the construction and sale after completion of construction. The computation of final eligible credit and reversal is similar to ITC on input and input services.
11 Where capital goods are used for more than one projects, the ITC on the same shall be apportioned to each project on a reasonable basis.
12 Where the useful life of the capital goods exceeds the project period the proportionate credit on such capital goods may be availed in the next project where the same is being used.
13 IGST credit shall be used first to pay IGST and the balance may be used for paying CGST or SGST. However, only after fully utilising the IGST credit, credit of CGST or SGST shall be used. [Rule 88A]
14 The procedure for assessment under rule 100 has been rationalised
15 The procedure for issuing notice and order for demand has been rationalised and relevant forms have been notified.

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81 Comments

  1. Susmit Priyadarshi says:

    Dear sir,

    I had booked a flat in sobha city gugaon in jan 2018 and 30% of the total amount was paid before 01 April 2019 @12% GST, now the developers have raised the demand based upon 12% GST.

    What is the process to know that the benefit of availing ITC by the developer is being passed upon to me (buyer)?

    Thanks

    Susmit Priyadarshi

  2. Kelasi says:

    We have booked agreement in pre-GST Era i.e. 12/06/2017 and half payment done in pre-GST era. 25% Payment to made till OC and Balance 25% after receiving OC. What will GST Liabilty for payment made after GST era.
    Is there is any relation of CC/OC Date for chargeabilty of society formation etc chrges

    1. CA Vasant Bhat says:

      In this case, the rate of GST from 01.07.2017 to 31.03.2019 would be 12% (8% in case of affordable housing). with effect from 01.04.2019 the rate could be 12% with ITC or 5% without ITC (1% in case of affordable housing) as the builder opts for his project.

  3. Vinod says:

    I have booked 2 BHK flat in 2015. In 2018 I have got a possession but I did not take it.

    In Jul-20, I surrendered this unit to builder and same got replaced with 3 BHK under construction flat in same project. Now I have got offer of possession in Feb-21.

    Current GST slab is 5% but in new demand letter, builder has asked to pay 12% GST. I talked with their team, as per them any under construction unit which is booked before Apr-2019 is liable to pay 12 % GST.

    I have paid 12% GST on each demand throughout the period since GST is introduced. I never got discount waiver or ITC but builder has asked me to sign the document related to discount as it is part of RERA.

    Kindly help me on this matter as it is clear misuse of GST unawareness.

  4. Raj Kumar Mishra says:

    I HAVE BOOK AFLAT OF 610 SQ FT.AREA INCLUDING SUPER BUILTUP AT 19 LACS ON 19/10/2020 (BOOKING dATE 05/2019) BUILDER CHARGE GST FROM ME AFTER REFISTRATION AT @5% WHAT I DO PL SUGEST ME IN SAME BUILDING OTHESR SOME FLAT AREA IS APPROX. 1250 SQ FT. BUT COST IS BELOW 40 LACKHS

    1. CA Vasant Bhat says:

      Since the area of the flat is less than 60 Sq meter and the value is less than 45 lakhs could be eligible for 1% GST if the construction started after 01.04.2019. If the construction has started prior to 01.04.2019, then at least 50% of the FSI should be used construct the affordable houses in the said project, then only 1% is applicable post 01.04.2019. You may check with the builder.

  5. NIDHI says:

    Hello Sir,
    How can I find out the GST paid by builder, if they are not providing it in Invoice.
    We have paid 40 percent of total sale value which includes around 5L of GST . The project has lost the Environment Clearance now. If i cancel the sale agreement – Builder is saying they will forfeit the GST amount. Is this legal?

    1. VASANT BHAT says:

      You should ask for the Tax invoice from the builder, though it is not the evidence for the tax payment. If the booking is cancelled, he can issue GST credit note provided he has paid the tax in the current year. Alternatively, he can adjust this tax paid on your flat against the new buyer/ other tax liabilities (which is normally not done). If he forfeits GST on cancellation, you may apply for refund (within 2 years from the date of payment of tax).

  6. Hiralal Das says:

    I have booked a Flat for Rs.27,61,700/- plus applicable GST having Carpet Area-583 Sq.ft. & Saleable Area-921 Sq.ft. vide an agreement for sale and constructions of the flat dated 16/03/2018.
    I have paid total amount of GST Rs.2,56,188/- & Rs. 3,504/- @12% & 1% on Rs.21,34,916/- and Rs. 3,50,434/- respectively as per prescribed Government rate.
    Builder has send the final demand note for taking over the possession of flat with a demand note for Rs.2,79,110/- without passing benefit of Input GST credit.
    Please suggest and provide order if any.
    I will be very thankful to you in this regards.

    1. VASANT BHAT says:

      When you booked the flat, the rate applied would have been 12% and wef 01.04.19 the rate applied is 1%. This difference of tax on the amount paid by you to builder/demand made by him after 31.03.19 would be the reduction in the tax liability, the benefit of which should be passed on to you.

    2. HIRALAL DAS says:

      Sir, my query is whether i am eligible to avail the ITC from the builder which was paid @ 12% (from Feb’2018-March’2019) before incorporation of rate of GST w.e.f.01/04/2019

      1. CA Vasant Bhat says:

        ITC paid on the flat is not eligible for credit except the case where it is sold during construction. Even in case of commercial premise also it is disputed. (Refer Safari Retreat case of Orissa High Court, where credit is allowed on construction of premise used for renting out, pending before SC now)

  7. Jaspreet Singh says:

    Hello Sir, I booked flat in Bangalore in Jan 2020 and did the registration On May 28th. Flat cost is 53.40 lacs. Builder charged me 12% GST. Can I claim the benefit of ITC from the builder now?

  8. C.MURALI KANTH says:

    Sir
    If the flat is booked and not registered (only advance amount is received in Sep-2020). Whether I have to pay GST @5%.Please clarify me.
    with Regards

  9. Deepali Thakur says:

    Query regarding gst % ( 1% OR 5%)

    If a project has 50 % affordable housing flats(i.e.60 sq m in metropolitan cities having value up to 45 lakh )
    & 50 % Non Affordable housing flats (i.e. other flats having carpet area more than 60 SQM & value is above 45 lakh)

    what will be the rate of GST on such project.

    1. C.MURALI KANTH says:

      Sir
      I have opted 5% GST rate.Advance amount received on flat booking in the month of Sep-2020.Whether I can furnish this in the GST returns or not

      1. VASANT BHAT says:

        On receipt of advance, you need to pay GST in the same month. You can adjust the liability when you issue tax invoice for the service for which advance was received.

    2. VASANT BHAT says:

      In case of project started prior to 01.04.2019, more than 50% of the carpet area of the project should be used for affordable housing apartments having area less than 60sq mtr and builder has not opted for old rate with iTC, then 1% rate is applicable.
      In case of projects started on or after 01.04.2019, the area of the apartment should not exceed 60/90 sq mtr and value should not exceed Rs. 45 lakhs, then 1% is applicable.

  10. Manesh J says:

    I have purchased flat in 26 march 2019 having total cost of 24.5 lacs, and agreement value is of 2175000/- . Stamp duty and registration charges of 174000/- .but in this documents there is no mention of gst charges..
    Please suggest us, how many percent of gst apply

    1. VASANT BHAT says:

      The rate of GST depends upon the option opted by the builder. In case of ongoing project, the builder can opt for old rate (8%/12%) with input tax credit or new rate (1%/5%) without input tax credit. Also if it is a affordable residential apartment, concessional rate is available. Please check with builder.

  11. Ranjeet says:

    Hi Sir,

    I registered the flat after the April-2019 and made all payments beyond the revised GST rate date.
    Registration of flat was done on june 2019.
    And now at the time of possession (sept 2020), builder is asking for 8% GST (old rate) and he never mentioned anything about GST during registration.
    I told him that i will pay 1% GST as per new rule, but he is denying and asking for 8% GST(then only he will give possession).

    Please sir, help me what shall i do for this.

    Regards,
    Ranjeet

    1. VASANT BHAT says:

      The new rate is applicable for the project commenced from 01.04.2019 and also for the ongoing projects for which the builder has not opted for old rate. Further 1% is applicable for affordable houses (less than 60/90 Sq mtr and upto Rs. 45 lakhs).
      Where the builder has opted for old rate with ITC, he cannot charge the new rate of 1%/5%.

  12. FORVAT1234 says:

    RESPECTED SIR, BELOW ARE THE PURCHASE RATIO OF NEW SCHEME AFTER 01/04/2019 :
    TOTAL PURCHASE –> 100LACS

    RD PURCHASES GOODS/SERVICE –>70 LACS

    STEEL PURCHASE URD–>5 LACS

    LABOUR TO URD–> 25 LACS

    WHAT ARE THE TAX LIABILITIES FOR ABOVE CRITERIA ?
    KINDLY GUIDE US..

  13. PRASHANT GOHIL says:

    TOTAL PURCHASES(GOODS/SERVICE) – 100 LACS

    RD PURCHASES GOODS/SERVICE ->70 LACS

    STEEL – PURCHASE URD ->5 LACS

    LABOUR TO URD ->25 LACS

    SO ,AS PER ABOVE CRITERIA IS THERE ANY TAX LIABILITY ?

  14. Shankar Thakur says:

    Dear Sir, I have taken a flat last year in Aug and builder charged me a GST of 12%. A month back I got know that if a person is eligible for PMAY scheme, he/she should give GST of 8%. We have already paid 90% of the amount. Builder is telling me that 8% GST will be applicable only for the remaining 10%. I feel this is not logical. Could you please guide the best way forward?

  15. Dakshit says:

    Dear Sir,
    We are a Developer. And Our Project started in March 2018. We had received some advance form the Customers. And for the Same, we had paid GST on Advance receipt @ 18 %. And construction was not completed till March 2020, so sales were not booked in any of the previous years. Now we have opted for the new compostion scheme so our supply will attract GST @ 5 %. so, my doubt is
    1. Can we reverse the GST which we had paid on Advance receipt against this sale ?
    2. should we charge 5 % GST extra from the customers ? or should bear GST Exp on our own ?

    1. VASANT BHAT says:

      1. The GST paid on advance can be adjusted against the invoice which you are raising now @5%.

      2. Whether to charge GST 5% over above the price agreed or not depends on your sale agreement.

  16. Tanuj says:

    Sir
    A builder in construction of Lawyers Chamber. Rate of GST for construction ?? & can he take input on material purchase. As he has the whole completion contract.

  17. Avani says:

    Dear sir,
    Expeses paid such as ameinities charges, drainage charges, FSI fee or other major minor charges by builder to municipality of town planning is to be considered as exempt supply or esle activities covered in schedule III for calculating 80:20 ratio. Whether RCM apply on such exp.?

    1. VASANT BHAT says:

      In my view, the charges mentioned by you is not in the nature of consideration for the supply. The regulation of the construction is the duty of the municipal corporation/Govt. Such activities may be said not a supply. Hence no RCM and also not to be considered as exempt supply.

  18. Avani says:

    Sir,
    I have questions in my mind that in case of builder’s 80:20 ratio should considered financial year wise or upto the period of completion certificate for particular project completion? Also, GST credit reversal of f.y.2018-19 charged to profit and loss of f.y.2019-2020 is considered for 80:20 ratio of f.y.2019-2020?

  19. Avi says:

    Sir,
    In case of builder’s new scheme of 80:20,
    Interest paid by builder to customer on loan taken by customer from bank. Such interest is in nature of reimbursement of exp. i.e. interest paid on loan by customer to bank later such interest is reimburse by builder to customer untill the possession of property not given to customer. Then in such case can builder considered such interest amt. as inward supply from URD and also it is to be considered while calculating ratio of 80:20 ?

    1. VASANT BHAT says:

      Yes, since it is in the nature of inward supply this is to be considered for computing 80% supply from regd suppliers.

      1. Avi says:

        Thank you for your quick reply but I don’t get logic that why we should consider as inward supply from registered supplier rather to URD bcoz we paid interest exp. to customer not to bank

        1. VASANT BHAT says:

          In this case, loan is not taken from banks by the builder. To builder the loan has come from the customer and interest is paid to customer who is not registered under GST.

  20. Avi says:

    Can interest paid by partnership firm to partner on capital is considered as exempt supply ? and also further it is liable to pay gst by firm for service received from unregistered person while calculating 80:20 ratio in case of builder’s.

    1. VASANT BHAT says:

      For reversal of ITC u/r 42 interest (exempt income) should not be considered. However, for computing the inward supply from URP, interest paid to un registered partner need to be considered. While computing you may unsure that tax is not paid on interest portion to reach 80% mark. e.g., if your purchase from regd person is 78% and 22% is interest (URP), then no need to pay GST on 2% to make it 80%.

  21. A.Srinivasa Rao says:

    We given our old house and land for development to Builder in50:50 with development agreement registered in Sub registration office in 2015. Now project completed and NOC was issued in Jan2020. Now builder says oweners should pay [email protected]% to their got share flats.

    hence please tell me who should pay GST and what %,?

    .

    1. VASANT BHAT says:

      Since this JDA is entered into prior to 1.4.19, land owner is responsible to pay GST on DR. On constructed premise given by builder to land owner, builder is liable to pay at the rate opted wef 1.4.19.

  22. Rajan Kamthe says:

    i am land holder. My land give to builder joint venture basis. Flat is ready but builder say 5 % GST pay reversal basis . pl suggest , land holder pay gst . which act PL

    1. VASANT BHAT says:

      wef 1.4.19, in case of residential projects, GST on DR is to be paid by the builder under RCM on the date of OC on the unsold portion of the constructed premise intended for sale at the rate opted for the project. The builder is also required to pay GST on the portion of the premise given to the landowner.

  23. Sanjeev kumar misra says:

    Sir
    Project started in 2015.gst came in July 17. Approx 75% project complited in july 17.I have booked flat in feb 18.Can builder charge gst 12%for that portion for which they did not pay gst?
    Is there any system in gst act that builder charge gst only on proportionate basis for transition period.

    1. VASANT BHAT says:

      12% effective GST was applicable prior to 1.4.19. Hon Supreme Court in case L&T has held that the works contract starts from the date you enter into sale agreement of flat. You may argue that since on the date of agreement if 75% construction was completed you need to pay GST only on balance 25%. The dept may not agree to it, courts may uphold this.

  24. Ashish says:

    Sir,
    I have booked flat in 2009 in under construction project and builder had issued allotment letter and I have paid him money (with Service tax after applicable date) on progress till 2014 and in 2014 I approached high court for execution of agreement and I further deposited part money in the court (with service tax). after a brief period now the project is complete and O.C is issued in 2018 and now he’s willing to execute an consent term in the court and I still have to pay him balance money + car parking charges + other charges (maintenance for 2 yrs / property taxes / development charges / legal charges / club membership etc).
    He’s charging 12% GST on the balance amount & car parking charges
    And
    18% GST on other charges.
    Do I need to pay the GST as project has already been issued O.C in 2018 & are the GST % mentioned above appropriate.

    1. VASANT BHAT says:

      GST is required to be paid by you. Effective rate of 12% is applicable on all charges mentioned in the sale agreement.

  25. Navin says:

    I have booked under construction flat on 1st Jan 2018.
    It is still not completed and now i have asked for possession of my flat.
    Developer has asked me to pay three different percentages of GST based on payment done date-by-date after booking.

    Payment done from 1st Jan 2018 to 1st April 2018 = 8 %
    Payment done after april 2018 to 1st Feb 2019 = 5%
    and
    Payment done after 1st Feb 2019 to till date = 1%

    Please advice, is this correct formula to count GST on under construction flat ?

    1. VASANT BHAT says:

      8% GST rate was applicable on affordable houses prior to 1.4.19. WEF 1.4.19 it is 1% if value of affordable housing is less than 45 lakh. Otherwise 5%.

  26. Ashok Saha says:

    We want to build a Residential House in kolkata, (i.e;cooperative housing society) new GST rate for builder . Our builder asking 18% GST.

  27. kirti jain says:

    i booked flat in Mumbai suburb before Dec18, builder asked for 12% GST which we paid with 10% booking. even after new notification in Apr19, builder is asking for 12% GST. Agreement value is 1.2 cr. i am salaried. so no claiming of GST benefit etc. for new flats booking they are charging 8%. how it can be for same building – mine old booking and someone’s new booking today, there can be two GST rates of 12% and 8%?
    please advise since high tax rate is big un-necessary burden.

    1. Vasant Bhat says:

      There cannot be different rates like you mentioned. If the builder opts to continue with the old rate, new booking should also attract the same rate for the said project

  28. MITESH BHAGAT says:

    Hi Sir,
    I am a developers my project is complete before 01/04/2019 my completation certificate is received so i have no chose new option so my party payment is outstanding so gide me i have received some amount after 01/04/2019 i liable for gst tax gide me ?

    1. Vasant Bhat says:

      Since the construction is complete you should have issued the tax invoice prior to 31.03.2019 and paid the applicable GST. In such cases, the money received after 01.04.2019 shall not attract GST.

  29. Naresh says:

    Hi Sir,
    I have purchased a under construction 2BHK Flat in Hyderabad in the month of Dec 2018 with a sale agreement of 50 lcas (43.5 lacs flat cost + 3 lacs Amenitites ) and i did not registred it due to changes in GST rates after April 01, 2019.

    My builder is asking me to pay 5% GST for Govt registration value which is 26 lacs and for remaining 24 lacs he is asking me to pay 18% GST. I took a loan from The Jammu and Kashmir Bank with a sale deed of 50 lacs and they sanctioned 35 lacs and remaining amount i have paid.I paid complete Flat Amount in March 2019 to the Builder.

    Please suggest me whats the exact GST i need to pay now.

  30. Naresh says:

    Hi Sir,
    I have purchased a under construction 2BHK Flat in Hyderabad in the month of Dec 2018 with a sale agreement of 50 lcas (43.5 lacs flat cost + 3 lacs Amenitites ) and i did not registred it due to changes in GST rates after April 01, 2019.

    My builder is asking me to pay 5% GST for Govt registration value which is 26 lacs and for remaining 24 lacs he is asking me to pay 18% GST. I took a loan from The Jammu and Kashmir Bank with a sale deed of 50 lacs and they sanctioned 35 lacs and remaining amount i have paid.I paid complete Flat Amount in March 2019 to the Builder.

    Please suggest me whats the exact GST i need to pay now.

    1. Lakshminarayana M says:

      I want to Built a Residential House in Bangalore, but about GST rates and all in GST effects, From 01/04/2019 onwards wht is the proceducre in this regards.

    2. Ratna Bose says:

      Hi Sir,
      I have purchased a under construction 2BHK Flat in KOLKATA in the month of APRIL-17 with a sale agreement of 42 lcas (38 lacs flat cost + 4 lacs Amenitites ) and first 2 installment we pay service tax 5% after that we pay 12% gst & get credit note for 5% till March-19. and balance is 20% on dt 31.03.2019. now my builder again charges 12% gst on balance 20 % on dt.10.07.2019 after get completion certificate. we told to our builder no GST applicable after completion but they told me no if you purchase after completion certificate then only nil GST but in your case u already booked in 2017. So we charged GST on Balance 20% amount. Please help and advice it is correct.

      Please suggest me whats the exact GST i need to pay now.

      Ratna

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