GST on under construction property

[Asked by Guest]

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

GST on under-construction property applies to pending payments; builders must credit input tax benefits and prevent profiteering.
GST applies to staged payments for under-construction residential units after the GST effective date; prior regime taxes (service tax and VAT) were payable on advances until occupation certificate. Builders may claim input tax credit under GST, and anti-profiteering rules require passing reductions from tax credits to buyers, enabling purchasers to seek adjustments where benefits are not reflected in payable instalments.