GST for 85% completed house ?

[Alle SaiPrakash]

Dear All,

I have booked an independent house on 23rd June 2017, booking was with a society and builder .
I have paid 10 lac rupees as booking amount with Builder and Society on 23rd June 2017
Booking with Builder to construct independent house with 1050 sft build up area.
By the time of booking the house was completed 85%, and association is planned to register only plot on my name and the builder is going to construct the house.

Construction charge is ₹ 13,50,000/-
Still plot is not registered on my name.

Now association and Builder is asking to Pay GST for complete constructed amount.

Do I need to pay GST complete constructed area OR for pending work ? for others who booked in March /April 2017 they are changed only for pending work

Please let me know do I need to pay for full constructed amount or only for pending amount ?

10 Lacs, as booking advance, I gave in the form of cheque on 23rhd June 2017 , which was released in 1st week of July as builder is out of station he deposited cheque on 5th July .

thanks,

Sai Prakash

[KASTURI SETHI]

It is to be decided on the basis of Point of Taxation Rules. So Service Tax is to be paid on the amount of ₹ 10 lakhs being advance payment. Here point of taxation is the date of advance payment. Date of cheque is the date of advance payment and GST is to be paid on the balance amount. This is as per Board's FAQ.

[Alle SaiPrakash]

Thank you Sir,

Service tax is considered for 10 Lakhs which I paid as advance.

being I am new the rules for GST, I have one clarification.

Builder is completed 85% of construction at the time of booking ( before 1st July), he could have paid service tax for the material that he purchased and labor charges , I think he should not charged for complete constructed amount ?

Can you please clarify on this point ?

thanks,

Sai.

[KASTURI SETHI]

Completion of 85 % is not relevant here. Date of advance received by the builder is relevant here. It is continuous supply. Moreover, since the cheque was encashed after 1.7.17 you will have to pay full -GST and not ST. Actually amount was paid after 1.7.17. whatever may be the reason.The date of debit is important here. Thus I amend my reply to this effect.

AI Summary

Point of taxation rules determine GST liability; payments debited after GST commencement attract GST rather than earlier service tax. Point of taxation determines tax liability: the date the advance is realized or debited controls whether GST or prior service tax applies. Completion percentage of construction is irrelevant; when a cheque is encashed or payment debited after the GST commencement, GST applies to the amounts received, treating the transaction as continuous supply and following the timing rules for advances.