What will be GST rates on pending payments for house purchase

[Amit Agarwal]

I booked a house in June 2016, for amount say ₹ 50L,and paid ₹ 10% of the total value that is 5L to book house. I paid 12% GST charges on booking amount that is 5 Lakhs.

Now as building is completed, builder asked me to pay rest 45 Lakh plus GST and final demand note for ₹ 45L plus GST at the rate of 12%.

As layman, what I understood from GST counsel decision on 24th Feb 2019, now 5% GST will be applicable on house. So, should I defer the balance payment ie 45 Lakh till 1st April, so as to get GST cut benefit.

[KASTURI SETHI]

In such cases, notification will be prospective and not retrospective. True picture will come only after issuance of notification.

AI Summary

GST rate change on residential property applies prospectively; pending payments' tax treatment depends on forthcoming notification. Whether a revised GST rate for residential property applies to outstanding instalments is the central issue: the advisory notes that rate changes effected by notification are prospective unless the notification expressly provides otherwise, so tax treatment of pending payments will depend on the notification's wording and effective date.