watch_later 05/08/18

Sir, I booked a flat in SEP 2015 and it is ready for pusetion in aug 2018. The builder taken service tax upto jun 2017 and he will asking for a sum amount as a 12% GST. But how much I suppose to pay service tax and GST?



MV parmar

1 Response | Latest response: 07/08/18 | Sort by Likes(thumb_up) Recent | GST Reply
watch_later 07/08/18

It depends whether you have paid entire  consideration prior to 01st July 2017 

In case the entire consideration has been paid before the introduction of GST, or if the invoice has been raised and it has been paid, you would have already paid service tax on the full value of the agreement. So, even if the construction is completed after the date of introduction of GST (i.e., June 30, 2017), you do not have any further tax liability under the GST law, as the GST substitutes the earlier service tax and VAT.

In case , entire consideration has not been paid before  01 July 2017 ,for the balance consideration, which remained unpaid and for which the builder has not raised an invoice, the builder will recover the GST at the rate of 12 per cent on the balance amount due

Even in this case also ,  the builder will be in a position to claim input credit on the materials and services used and should pass on the benefit of input credits to the flat buyers according to the GST’s rules,



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