Gst on flat purchase

This query is : Resolved

Tapash Kumar Biswas (Querist)
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14 June 2018 Dear Sir

I booked a flat on 2014 and paid Rs. 5,00,000/- as advance. Now I want to paid rest amount for taking possession of the Flat. In final payment builder ask to pay me the GST on whole amount instead of balance payment .

Is the Builders demand is correct ?

Please advise how to tackle this case with builder. Also Provide new notification no, if any, stating 12% GST on real estate property. I need to provide that notification to the Builder .

Further request for advice at the earliest.

CA Padmasri Manyam

CA Padmasri Manyam (Expert)
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14 June 2018 On 5,00,000 if he has paid VAT,ST. again there is no need to pay GST. if not paid, then GST has to be paid.
The rate of tax on construction of flat is 18%. There is standard deduction of 1/3rd towards land value from the total consideration. Therefore, the effective rate is 12%.
Refer sl.no.3 of Notification No.11/2017-CGST(rate) as amended.
links for the said notification is : http://www.cbic.gov.in/htdocs-cbec/gst/Consolidated_notification_CGST_11.pdf