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is builder liable to take GST

09 January 2018

I have purchased a flat from landlords part and agreement made in may2017 and registry made in November 2017. part payment was in may and balance paid in July. landlord praising me to pay GST to Builder. Is builder liable to take GST from me? kindly clarify me this matter is under GST ACT OR NOTE.

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4 Replies

Sanjay Thakur (19 Points)
Replied 11 January 2018

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Rekha Sai Teja (Working also) (406 Points)
Replied 12 January 2018

Incase You purchased the flat and paid advance before its construction, you hace to pay GST.

If purchased after the completion of certificate then GST Is not applicable.

SInce the LAnd owner is not a builder, he cannot charge GST

Sanjay Thakur (19 Points)
Replied 12 January 2018

I have purchased from landlord part and landlord force me to pay GST to Builder. Is it liable or not

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 12 January 2018

Was the flat completed in May 17. If yes- NO service tax or GST legally possible.,

If flat in progress in May then ST for payments made prior to July and GST for balance. Builder eligible for credit in GST for cement + inputs credit in work in progress. he may have claimed or not we do not know.

Further the landlord would have been charged ST / GST by builder and can avail the credit and adjust against the GST payable by him - need to understand that taxes paid at earlier point of time is adjustable for future taxes.

At times this information is not shared as this industry is largely opaque.