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

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 and SUN]

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 applicability on under construction apartments requires tax on sale consideration and related development and infrastructure charges.
GST applies to under-construction apartment purchases and extends to the undivided land share, construction cost and ancillary development and infrastructure charges; buyers should ensure builders both collect and remit GST and may prefer ready apartments where GST is not levied on the immovable sale.