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Builder is demanding more GST i.e 5% instead of 1%

CA.Shailesh Pathak (Finance officer in JUVNL) (123 Points)

07 January 2020

I have purchased a flat (agreement date is after 01/04/2019)a 900 sqft and price 43.5 Lakh excluding GSt. Project is ongoing project and builder has not opted for previous rate( i.e 8%,12%). Hence he should be charging only 1 % GST but he is demanding 5%.

Please suggest

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8 Replies

Rishu Gola (37 Points)
Replied 07 January 2020

Sir agar apka flat completed nhi hua he work chal raha he to builder apse gst charge kar sakta he 5% but agar apka flat complete he to gst apply nhi hoga uspar

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CA.Shailesh Pathak (Finance officer in JUVNL) (123 Points)
Replied 07 January 2020

5% kaise charge karega? Affordable housing me mera fall kar raha hai jiska rate 1% hona chahiye. Project ongoing hai aur Usne option opt nai kiya hai earlier scheme ka...

I guess you are not update on GST on real estate

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 08 January 2020

Yes you are correct But .... can you provide few explanation.

Whether the project is in metropolitan city ?????. If the answer is yes then Promotor is required to charge 5% GST because :
As 900 Sq.feet is equal to 83 Sq mtr. & the condition to charge 1% is that for metropolitan city the carpet area should not be more then 60 Sg.Mtr.

Note : Metropolitan cities are : Bengaluru,Chennai,Delhi NCR (Limited to Delhi,Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata & Mumbai (whole of MMR)

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CA.Shailesh Pathak (Finance officer in JUVNL) (123 Points)
Replied 08 January 2020

It's in Ranchi. Hence rate should be 1%. right??

What should i do now?

Is there any remady available under GST provision. ???

Where should i complain ?

CA.Shailesh Pathak (Finance officer in JUVNL) (123 Points)
Replied 08 January 2020

Originally posted by : Pankaj Rawat
	Yes you are correct But .... can you provide few explanation.Whether the project is in metropolitan city ?????. If the answer is yes then Promotor is required to charge 5% GST because : As 900 Sq.feet is equal to 83 Sq mtr. & the condition to charge 1% is that for metropolitan city the carpet area should not be more then 60 Sg.Mtr.Note : Metropolitan cities are : Bengaluru,Chennai,Delhi NCR (Limited to Delhi,Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata & Mumbai (whole of MMR)

It's in Ranchi. Hence rate should be 1%. right?? What should i do now? Is there any remady available under GST provision. ??? Where should i complain ?

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 08 January 2020

Yes if it is in Ranchi & it's below 45 Lacs , the Promotor is required to charge GST @ 1% & Not 5%

kindly register your complain on
add-dgcei @ nic.in .
And also call at Help desk of GSTN.

CA.Shailesh Pathak (Finance officer in JUVNL) (123 Points)
Replied 09 January 2020

Originally posted by : Pankaj Rawat
	Yes if it is in Ranchi & it's below 45 Lacs , the Promotor is required to charge GST @ 1% & Not 5%kindly register your complain on add-dgcei @ nic.in .And also call at Help desk of GSTN.

Thanks