Real estate

This query is : Resolved

Vinod Swaminathan (Querist)
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19 April 2019 I purchased an under construction flat in 2011 and another one in 2015 in the same project near Mumbai. At that time the prevalent norms were VAt and Service Tax on under construction flat. The Project got delayed and the Developer completed this project in 2018. My queries are :
1. There are some balance payment pending on the Agreement value to be made to the Developer for which demand was raised in 2018 by the developer, the Developer is demanding GST on the amount payable to him, am i liable to pay GST if the entire service tax and VAT was paid on the agreement value. Even if the service tax and VAt is not paid in full, is he right in demanding gst SINCE THE AGREEMENT PRE DATES THE APPLICABILITY OF GST. If yes then what is the slab of GST applicable.

2. The agreement also mentioned of development charges and advance maintenance charges for 2 years to be paid separately to the developer this was not part of the agreement value, the Developer is demanding GST on the development charges and advance maintenance charges, is GST applicable on the same? if yes then what is the slab of the same.

Thanks and Regards,
vinod

Amol S Joglekar

Amol S Joglekar (Expert)
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19 April 2019 The position is somewhat like this:
01. Has the property received completion certificate on the date of booking? if yes...GST not applicable. If no...go to 2
02. is the agreement value 45 lakh or less?.... if no GST is 5%.if yes go to 3
03. is the property in metropolitan cities & carpet area less than 645 square feet OR the property is in non metropolitan cities & carpet area less than 968 square feet?... if yes GST 1% else 5%