Hi Sreekanth,
Need your suggestion on GST for Flat registration.
I have booked a flat last July 2016, at Nagarbhavi, Bangalore, Karnataka. The apartment has Ground + 4 Floors. And I have opted for a flat in 3rd floor. After negotiations, the total cost was finalized for Rs.61,50,000/- (Sixty one lakh fifty thousand) which includes Car Parking; BESCOM (Electricity) & BWSSB (Water) charges. During the initial discussion, the builder informed there will VAT applicable as per Government Norms. And I had agreed to pay the VAT since the tax are stipulated by Government and it remains same irrespective of the builder and place where am purchasing the flat.
After completion of formal agreement, 20% down payment was done as first installment and applied for loan from LIC Housing Finance the loan got approved and subsequently in the month of Feb 2017 (end of Feb) another Rs.40,00,000/- (Forty Lakhs) was released from LIC Housing Finance and am paying monthly EMI for this amount starting from March 2017.
The construction got completed in Feb or March 2017 however the lift was not installed and since I have opted for a flat on 3rd (which is 4th floor) I was not ready to move-in as I parents were not comfortable climbing 4 floors. The lift got installed in the month of August 2017 and I started the registration process. The builder informed that VAT is not applicable and I need to pay GST @12%.
And also informed that GST is applicable for the total cost of Rs.61,50,000/- (Sixty one lakh fifty thousand) and the amount I need to pay as GST would be Rs.7,32,000/- (Seven lakh Thirty Two Thousand).
In the agreement there is no mention of VAT.
I need clarification on:
- Goods and Service Tax (GST) and was implemented in July 2017 and by this time the construction of Apartment was completed then should I pay GST @12%?
- If the rule specifies that GST is mandatory then will it be applicable for total cost, which includes Car Parking; BESCOM (Electricity) & BWSSB (Water)?
- If the rule specifies that GST is mandatory then what is the % that has to be considered for GST?
- Whom should I contact to have more information?
1 Answers
Dear Sridhar,
Did your builder get Completion Certificate in the last financial year itself? Did they issue Occupancy certificates to the flat owners prior to July 2017?
As of July 2017, this is a ready to move in property, hence GST is not applicable.
(General view) I believe that GST is levied on parking, road cutting charges, electricity connection etc., as well.
Once car parking is sold by the builder to the purchaser of a flat/ office with a separate consideration, then GST is payable if consideration is received before issuance of completion certificate.
Just check if your builder has registered for GSTIN? Are they ready to give Invoice for taxes paid??
Kindly read :
https://www.relakhs.com/gstin-goods-and-services-tax-gst/
https://www.relakhs.com/fake-gst-bills-receipts-invoices/
https://www.relakhs.com/home-buyers-complaints-builders-rera-act/
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