TaxTMI 
TaxTMI 
Builder charge GST for sale without invoice
X X X X Extracts X X X X
X X X X Extracts X X X X
....uilder charge GST for sale without invoice<br> Query (Issue) Started By: - Velayutham Karani Dated:- 20-2-2025 Last Reply Date:- 22-2-2025 Goods and Services Tax - GST<br>Got 13 Replies<br>GST<br>Hi Team, I booked one plot from the reputed builder in Chennai. I paid almost 90% of the sale consideration value including GST as mentioned in the builder quote. When i asked for the GST invoice, build....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er gave only receipt without invoice and GST number. He say GST bill will not be provided. is this correct? in the quote, Builder mentioned "there will not be any rebate of GST input credit to be pased", Being individual, Am I elligible to claim input credit? thanks, Velayutham Reply By Sadanand Bulbule: The Reply: Dear Plz make it clear whether you have purchased plot or flat? Fur....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ther in respect of purchase of immovable property like plot or flat, the transaction gets terminated automatically. So the question of ITC does not arise to the buyer. As regards to invoice issued by the builder, there is no GST on the sale of plot. Whereas in respect of flat, the facts need to be checked as regards to payment made to the builder, before or after the completion of the flat. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Reply By VENU K: The Reply: GST credit cannot be claimed is true. But if the builder has collected GST from you he is bound to give you a tax invoice also. Reply By Sadanand Bulbule: The Reply: The builder is also bound to remit the amount of GST so collected to the department on time. Reply By KASTURI SETHI: The Reply: The undermentioned my reply is in consonance with the reply of Sh.Sadan....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and Bulbule, Sir. Therefore, my reply should be read conjointly with his reply. (i) Sale of land (plot) is neither supply of goods nor services as per Clause 5 of Schedule-III. Hence it is non-GST supply and GST is not leviable. The words, "sale consideration including GST" confirm that the builder has collected GST from you. which is not leviable. He cannot retain with him. (ii) As per Section ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....76 (1) of CGST Act, the builder is statutorily bound to deposit the said amount of tax with the Govt. (iii) As per Section 54 (1) of CGST Act, any person can claim refund. For claiming refund as an individual, being unregistered, you can apply for refund under Section 54 (1) of CGST Act read with Board's circular appended below Refund for unregistered person under CGST Rule 89(2) - Implement....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ation of filing an application - Clarification C.B.I. & C. Circular No. 188/20/2022-GST, dated 27-12-2022 Reply By Sadanand Bulbule: The Reply: Dear Sir Thank you very much for expanding the explanation in the interest of all. Reply By KASTURI SETHI: The Reply: Sh.Sadanand Bulbule Ji, Sir, You have already laid the foundation. Reply By Velayutham Karani: The Reply: thanks everyone f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or the comment and advices. Some additional info. this is only plot under construction. there is no flat or building. builder made two agreements one for "sale of plot" and other "construction of ammenities"... he put GST in both. when i asked him to show price is exclusive of GST in the agreement, he did not mention. he did not provide GST bill as well. I paid 90% of the total amoun....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t include GST for both agreement. but builder did not give GST bills. Reply By Sadanand Bulbule: The Reply: In view of your last post, the simple remedy is to visit the nearest GST office and provide all the relevant documents with payment details in writing. Certainly they would cause proper action as per law. Reply By KASTURI SETHI: The Reply: The querist is again solely dependen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t upon the builder. In case the builder deposits amount of tax with Govt., the querist will have to obtain disclaimer certificate'' from the builder. The builder will declare that he has no objection if refund is sanctioned to the buyer. He will also undertake that he will not claim refund from the department. The department does not interfere with the intern....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al dispute between the buyer and the builder. At present the best way-out is to get refund of tax from the builder by way of persuasive method. This is a short-cut method.. Otherwise be prepared to face the rigours of litigation and the litigation is time consuming and full of stress. Reply By Sadanand Bulbule: The Reply: Dear Sir, When I was working in Enforcement wing, a similar buyer a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pproached me with relevant details. Based on that, we conducted investigation against the builder, which busted huge tax evasion. In that backdrop, I suggested the querist to do the same. Otherwise also, the querist is at liberty to follow your advice to seek refund of GST. Reply By KASTURI SETHI: The Reply: Sh.Sadanand Bulbule Ji, Sir, I agree with your views in toto. The basis of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... your reply is full of substance. It is natural that if the querist visits the Govt. department with documentary evidence, such action can be feared. Some persons may not like to go to that extent. The querist is concerned with his refund of tax paid which was not leviable. Sale of land/plot remained tax-free even in Service Tax era. When an agreement is signed by both parties, it should be read t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....horoughly and carefully before signing. Two years ago I dealt with similar issue. Both the parties are in RERA Court. because of the complicated language of the agreement. Here we are not aware of the terms and conditions of the agreement executed between both. Litigation should be the last resort. Reply By Sadanand Bulbule: The Reply: Dear Sir ji Very true. We are offering comments on limite....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d information. Our perspective is always larger than the query. Reply By KASTURI SETHI: The Reply: Dear Sir, Yes, Sir. The reason behind 'larger perspective' is that experts' advice/guidance consists of characteristics of sincerity, honesty and genuineness.<br> Discussion Forum - Knowledge Sharing ....