Gst on under construction property

This query is : Open

Jiten Verma (Querist)
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09 August 2017 I am Jitender Kumar and stay in Bangalore, recently we have bought a flat in Bangalore on 29th May with the advance payment of 20% of total cost as booking amount.

Builder has provided us payment slab with Service Tax as 4.9% which we have to pay every alternate month from August onward.

Since GST is in place now builder is asking us to pay 12% GST on the pending slab though we have booked the flat before July itself rather than 4.9% earlier service tax. This is creating a burden of almost 4 lakhs on us. I believe that builder should not ask increased tax slab since we have booked before GSt implementation.

I am really confused now and thinking that builder is cheating with the customer. I don't know whether builder is right or wrong. I tried to get the answers from many person but getting mixed reviews.

Hence I am writing this query here, it would be great help if any one can answer on this.

CA Suresh Jain

CA Suresh Jain (Expert)
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09 August 2017 So far rate is concerned, the builder is right in asking you to pay 12% GST on payment being made by you after 1st July 2017. The increased tax should be absorbed by your builder as he is now eligible for input credit against the GST paid by him which was not available to him earlier. You need to discuss with the builder.
N. Jain
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