GST on under construction property

[Jitender Kumar]

I am Jitender Kumar and stay in Bangalore, recently we have bought a flat in Bangalore on 29th May with the advance payment of 20% of total cost as booking amount. Builder has provided us payment slab with Service Tax as 4.9% which we have to pay every alternate month from August onward.

Since GST is in place now builder is asking us to pay 12% GST on the pending slab though we have booked the flat before July itself rather than 4.9% earlier service tax. This is creating a burden of additional 4 lakhs on us.

I believe that builder should not ask increased tax slab since we have booked before GST implementation. I am really confused now and thinking that builder is cheating with the customer. I don't know whether builder is right or wrong. I tried to get the answers from many person but getting mixed reviews. Hence I am writing this query here, it would be great help if any one can answer on this

AI Summary

Buyer Challenges 12% GST on Pre-GST Property Booking; Builder to Consider Input Tax Credit Benefits A buyer in Bangalore raised a concern about being charged 12% GST on an under-construction property, booked before GST implementation, instead of the previous 4.9% service tax. This increase resulted in an additional financial burden. Responses indicated that while the current GST rate applies, builders should pass on tax reductions due to input tax credits. The buyer was advised to discuss this with the builder, who eventually agreed to consider the tax credit benefit. The builder informed buyers that the input tax credit is still under discussion, with updates expected by the month's end.