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Do GST applicable on purchase of new flat.

316 views 5 replies

Sanjay Prasad

Assistant Manager Accounts

66 Points Joined March 2012

I have booked a flat which was under construction. I have made payment in installments. Now, Construction company is telling that if I would not do registration before January'19, he will charge GST @ 12%.

Does GST applicable on purchase of flat??
thanks

Replies (5)

ABHIJIT MANNA

ACCOUNTANT

447 Points Joined July 2016

Yes, GST should be charged agaist your advance payment .

MAHENDRA KUMAR BAGRECHA

FCA

1402 Points Joined March 2009

if you buy ready made flat having completion certificate then GST is not applicable.

pritesh

CA Final student

7106 Points Joined April 2018

agreed with mahendra sir

Pankaj Rawat

GST Practitioner

55067 Points Joined June 2017

As per the clause 5(b) of the Schedule II of CGST, Act,
2017, construction of a flat / house / complex intended for sale
is a supply of service.

Thus if you have paid a single penny for flat booking (before completion certificate obtain by Builder) he is liable to charge GST

Shivam RC

Student

23688 Points Joined November 2017

Agree with Pankaj Sir....

Sale of Building after receiving Completion Certificate is treated as NO SUPPLY as per Paragraph 5 of SCHEDULE III of the CGST Act 2017. Hence, no GST leviable on Completed Flats.

However, if the same is in Under construction stage , then it is a 'SUPPLY of SERVICE' as per Para 5(b) of SCHEDULE II and GST will be leviable thereon.