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.
Inquiry on GST Rate for 2016 House Purchase: Builder Requests 12%, Participant Hopes for 5% Based on 2019 Decision A participant inquired about the applicable Goods and Services Tax (GST) rates on pending payments for a house purchased in June 2016. Initially, 12% GST was paid on the booking amount. With the building now completed, the builder requested the remaining payment with a 12% GST. The participant referenced a recent GST council decision suggesting a 5% GST rate might apply from April 1, 2019, and considered deferring payment to benefit from the reduced rate. The response indicated that any change in GST rates would apply prospectively, pending official notification. (AI Summary)
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