Applicability of GST

[Bharat Cholleti]

Dear sir,

Applicant has given sum loan to the builder in the year 2020. Builder purchased a piece of land in the year 2021and completed the Construction in the year 2022 received OC from competent authority, now the the applicant wants to take a flat from the builder by paying the balance amount to the builder. Will there be GST applicability to the applicant please clarify.

AI Summary

GST Concerns Arise Over Loan as Advance for Flat Purchase; Nature of Transaction Under Scrutiny An applicant provided a loan to a builder in 2020, who then purchased land and completed construction by 2022. The applicant now seeks to acquire a flat by paying the remaining balance. The discussion revolves around whether GST applies to this transaction. One expert suggests that if no interest was paid, the transaction might be considered an advance rather than a loan, raising GST concerns. Another emphasizes the need to determine the true nature of the transaction, warning of potential scrutiny by tax authorities. The consensus is that GST applicability depends on the transaction's specific details and documentation.