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gst charged on sale agreement before oc

10 December 2018

GST charged on sale of lat agreement before date of occupation certificate (OC) but demand letter issued after oc .
In such case, whether GST to be paid to builder on the demand amount as per demand letter.

pl clarify

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (170108 Points)
Replied 10 December 2018

Yes, GST liability arose on the date of transaction.... & not demand!!

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Ruchira (Article) (208 Points)
Replied 10 December 2018

The sale of Flat took place before the completion certificate was issued. Thus GST has to be paid irrespective of the fact that demand letter was issued after completion certificate was issued.

Satish Kavitake (389 Points)
Replied 10 December 2018

but normally builder pays GST on the basis of demand letter issued and not on the basis of flat sale

Ruchira (Article) (208 Points)
Replied 10 December 2018

However, As per the Act, GST is applicable only when completion certificate is not issued. Once the completion certificate is issued then Builder can not charge GST. Thus when the demand letter is issued does not matter. When sales take place is important to charge GST.