Whether GST is payable on resale of flat by a buyer before its completion?

[Parag Phanse]

A buyer bought an apartment / flat which was under construction from the developer. An ‘Agreement to Sell’ was registered and stamp duty was paid on the entire consideration by the buyer. Now, before completion certificate was obtained, the buyer sold the apartment / flat to another person. Is the buyer liable to charge and pay GST on resale of the apartment / flat before completion certificate has been obtained for the same?

AI Summary

No GST on Resale of Under-Construction Flat; Considered Transfer of Rights, Not Sale. A buyer purchased an under-construction flat and registered an 'Agreement to Sell,' paying stamp duty. Before the completion certificate was obtained, the buyer sold the flat to another party. The discussion focuses on whether GST applies to this resale. One participant argues that the resale of an under-construction property is taxable with no exemptions, while another suggests examining the agreements to determine GST liability. It is debated whether the transaction is a 'transfer of rights' rather than a sale and whether the first buyer provides construction services to the second buyer, impacting GST applicability. The consensus leans towards no GST liability for the first buyer, considering it a transfer of rights.