GST on apartment purchase

[Maneesh Agarwal]

I'm looking for under construction apartment which would be ready in a month time.

Builder is asking to pay GST on below items. Should GST be applicable on all these items?

• UDS consideration
• Cost of construction of apartment
• Township infrastructure charges
• Infrastructure and Amenities charges
• Development charges for Water & Electricity
• Development Charges for Pipes Gas
• Development charges for Generator

Thanks, -Maneesh

[Himansu Sekhar]

Yes GST is applicable on all such charges

[PAWAN KUMAR]

As per my view, GST shall be levied at 18% on such items, hence, builder is asking for payment.

[KASTURI SETHI]

I concur with the views of experts.

[Ganeshan Kalyani]

GST is payable on under-construction house @18%. Thanks.

[DR.MARIAPPAN GOVINDARAJAN]

I also endorse the views of the experts.

[Himansu Sekhar]

Thank you sir

[Guest]

Some builders are collecting GST(at merit rate) from buyer but not paying to govt. Need to ensure reputation of builder and pay GST.

[YAGAY andSUN]

We endorse the views of our experts and if such builders are not paying back the collected GST to the Government then they can be arrested.

[Maneesh Agarwal]

Thanks everyone for your kind advice.

[Ganeshan Kalyani]

Buy ready flat wherein GST is not applicable.

AI Summary

GST at 18% Applies to Under-Construction Apartment Costs; Verify Builder's GST Compliance to Avoid Issues. A forum participant inquired about the applicability of GST on various charges related to purchasing an under-construction apartment, including UDS consideration, construction costs, and development charges for amenities and utilities. Multiple respondents confirmed that GST is applicable at 18% on these charges. Some advised caution, noting that some builders might not remit the collected GST to the government, suggesting buyers verify the builder's reputation. One participant recommended buying a ready-to-move-in flat to avoid GST. The discussion highlighted the importance of ensuring compliance and transparency in GST payments.