Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

Applicability of gst in real estate

Shivam Agarwal (Sr. Accountant ) (37 Points)

31 August 2017

Dear Sir,

Below is the sequest of incident :- Please let me know whether GST is applicable.

1. On 6th June 2017, the flat was booked the flat.
2. On 9th June 2017 got the confirmation for the booking of flat
3. On 17th June 2017 agreement was done.

4. On 17th June 2017 demand letter was generated and 45 days was given to pay the dues. (i.e. due date is given as 21st July 2017.) (Builder is saying that it will consider due date as invoice date.)
5. On 19th June 2017 got the Allotment letter.
6. On 27th June 2017 done the partial payment.
7. On 30th June 2017 paid the full amount.

Demand letter is attached for your kind reference. Please let me know whether GST is applicable or not.

Reply
Follow
Share

16 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185078 Points)
Replied 31 August 2017

Service provided after applicability of GST But payment has been received before applicability of GST
- As per section 187
- no tax(GST) shall be payable on the supply of goods and/or services
- made on or after the applicability of GST
- if the consideration for the said supply has been received prior to the applicability of
GST and
- the duty or tax payable thereon has already been paid under the earlier law

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185078 Points)
Replied 31 August 2017

Read the Demand letter carefully, It becomes null and void by its own conditions.......

"Payments may please be made by bank drafts or MICR cheques in favour of GAURSONS REALTECH PVT.LTD.

* Please ignore this demand letter if already paid.

* The above mentioned demand has been generated without reflecting the interest accrued over delayed payment (if any). The accumulated interest for the delayed payments of installments will be determined at the time of final payment.

In case you require to get the upto date details of interest you may get the same from our corporate office or it can be checked through customer portal on our website.

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185078 Points)
Replied 31 August 2017

Practically, the installments of all the slabs on 21st July itself are contradicting........... as the installments are required to be paid as soon as the work gets completed, and all the floors are either complete as on the date of demand letter or otherwise cannot be completed on same day.

Based on the issue, the demand letter is just fabricated one and cannot withstand its course in legal terms .......

2 Like

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 31 August 2017

Yeah....
You are exactly My Dear Dhirajlal Rambhia Sir....

1 Like

Shivam Agarwal (Sr. Accountant ) (37 Points)
Replied 31 August 2017

Dear Sir, Thanks a lot for your valuable direction. So in this case we can say that the service has been completed on or before the generation of demand letter. But builder is claiming that supply is not completed hence GST is applicable. Is there any way to take legal action.

Upgrade to CAclubindia Pro. Subscribe Now!

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185078 Points)
Replied 31 August 2017

That is already been replied in first reply, as per section 187........ the GST is not applicable in your case.......... but builder will be at fault if he had not paid ST & VAT as per its liability.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185078 Points)
Replied 31 August 2017

I repeat:

Section-(GST)-187. Progressive or Periodic Supply of Goods or Services

Notwithstanding anything contained in section 12 and 13, no tax shall be payable on the supply of goods and/or services made on or after the appointed day where the consideration, whether in full or in part, for the said supply has been received prior to the appointed day and the duty or tax payable thereon has already been paid under the earlier law.

(CGST Law)

Notwithstanding anything contained in section 12 and 13, no tax shall be payable on the supply of goods and/or services made on or after the appointed day for the said supply has been received prior to the appointed day and the duty or tax payable thereon has already been paid under the earlier law.

(SGST Law)

1 Like

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 31 August 2017

@ Dear Dhirajlal Rambhia Sir.,
What a great reply. I proud of you Sir. Thanks for the Clarity....

1 Like

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 31 August 2017

Dear Shivam Agarwal...
As per demand, The builder also calculated Service Tax in the demanded amount. You ll see the details every payments head. So, Above said way GST not applicable for you.
In case the builder ll ask GST from You. Then he is fraudulent Activity. So, You can reply to the builder above reply from Mr. Dhirajlal Rambhia Sir's....

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 31 August 2017

Dear Mr Dhirajlal Sir.,
I have a BIGGGGGG Doubt...

Some time I got a notification in CCI portal for your attend a query... I see the link then no reply in particular forums.
Then how is the notification ll shown...

Ex: This forum you don't reply before 30minutes. But, I got notification for you attend this forum.....! 🤔🤔🤔🤔🤔🤔🤔🤔

Upgrade to CAclubindia Pro. Subscribe Now!

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185078 Points)
Replied 01 September 2017

Yes...... Your doubt is exactly. (though I do not follow any post, so no such alerts) ........

Many times I read some posts on Today's post page...... but when I click on it........ the thread do not have that particular post....... so there may be some censorship........... or may be overload hanging up...... Now-a-days this hang up problem over the site is very frequent........ in that time period some of the posts may get double or triple while some may be missing........

Sometimes I send some link in the post.......... but because of moderation..... it doesn't get posted......

Shivam Agarwal (Sr. Accountant ) (37 Points)
Replied 01 September 2017

Dear Sir, I am very thankful for sharing your wisdom. I will be thankful if you further share your view for the below claim by builder

1. According to him he has given only demand letter and invoice was generated on due date. In my views he has never generated invoice. The GST rule says that he has to give me the invoice within 30 days of supply but I have not received any invoice till now. Is the claim of builder valid.

2. Builder is claiming that the supply was not completed till the generation of invoice. In support of his claim says that

a) The invoice is not generated

b) The construction of flat is not fully completed. It is only 90% completed.

In my view he has have raised the demand for 90% of the product not for full product and if product is 90% complete the supply should be considered as complete.

Please provide your guidance.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185078 Points)
Replied 01 September 2017

1. Be clear that whatever amount you had paid before appointed date, even though it be advance.... was liable to be taxed in old taxation regime. And hence, whatever amount you would be liable to pay after 1st July, 2017 ( Nil in your case) is liable to pay GST.

2. Don't discuss anything in verbal terms. Just reply in simple language that you are not liable to pay any GST when you have nothing remaining to pay after 1st july, 2017.; with a copy to Anti-Profiteering cell, helpdesk[at]gst[dot]gov[dot]in

luv malik (aa) (33 Points)
Replied 10 November 2017

Hi, I had an invoice pending for payment which has outstanding interest of Rs. 90,000. Interest for delayed payment for the period: Oct 2015 (other demands have been paid) Date of Invoice : 20-10-2016 Date of Payment : 03-10-2017 Is gst applicable?

Read more at: https://www.caclubindia.com/forum/details.asp?quote=1748491&mod_id=431764#reply