TaxTMI 
TaxTMI 
GST on under construction property
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....ST on under construction property<br> Query (Issue) Started By: - Jitender Kumar Dated:- 9-8-2017 Last Reply Date:- 9-8-2017 Goods and Services Tax - GST<br>Got 3 Replies<br>GST<br>I am Jitender Kumar and stay in Bangalore, recently we have bought a flat in Bangalore on 29th May with the advance payment of 20% of total cost as booking amount. Builder has provided us payment slab with Service Tax a....
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....s 4.9% which we have to pay every alternate month from August onward. Since GST is in place now builder is asking us to pay 12% GST on the pending slab though we have booked the flat before July itself rather than 4.9% earlier service tax. This is creating a burden of additional 4 lakhs on us. I believe that builder should not ask increased tax slab since we have booked before GST implementation....
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..... I am really confused now and thinking that builder is cheating with the customer. I don't know whether builder is right or wrong. I tried to get the answers from many person but getting mixed reviews. Hence I am writing this query here, it would be great help if any one can answer on this Reply By KASTURI SETHI: The Reply: In your case present rate of GST is applicable. Reply By Vamsi Kri....
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....shna: The Reply: In previous tax regime service tax @ 4,5% (under 26/2012 notification) and VAT (1.25% or 1%) was applicable for sale of construction of Flat (till the date of receipt of Occupation Certificate). As mentioned the builder should have discharged Service Tax & VAT ( hope Karnataka govt also issued circulars to discharge VAT till date of receipt as against the earlier practice of pay....
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....ment of VAT at the time of Registration) on 20% of the Advance amount that you have paid. With effect from 1st July under GST, Flat sales are taxed @ 12% effective rate, and GST is liable on 80% of your Flat value @ 12%. However Builders are given seamless credit in GST regime by allowing Input tax credit tax on all the purchases & services that has been received by him. As per Anti profiteer pr....
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....ovisions of GST, he should pass on atleast 3-4% of tax reduction to the buyer. You can question him the same. He may get a discount/reduction of 4% GST. Reply By Jitender Kumar: The Reply: Thansk Vamsi Krishna Information provided by you really helped me to have a discussion with my builder. Builder finally agreed on tax credit benefit and informed all the buyers that Input tax credit to buyer....
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.... is still under discussion. By month end we should able to get the positive response from builders. Thansk again.<br> Discussion Forum - Knowledge Sharing ....