Gst for resale flat without flat completion certificates

Querist : Anonymous (Querist) 13 November 2021 This query is : Resolved
Hi,

I am trying to buy resale flat in Pune. This building and said flat has not received completion certificate. Partial completion certificate is received for some flats and those flat owners received possession from builder. Society is also formed by those flat owners.
First owner has not received the possession letter from builder.
Individual flat 'Agreement of Sale' is there between builder and first owner in 2016. During that period GST was not there. VAT is paid first owner and entire consideration is paid by first owner to builder.
I do not have to pay any charges to builder.

This building is joint venture between first owner (landowner) and builder.
First owner (Landowner) has got more than 10 flats in this building, and he has individual sale Agreement for all his flats. Now he wants to sale his flats as individual owner.

My question is - As this flat (which I am buying) has not received completion certificate and possession letter is not there with first owner (landowner) do I need to pay GST?
in first sale agreement total flat cost is 65 Lakh and I am buying it for 90 Lakh.
Do I need to pay GST on addition cost of 25 Lakh?
If yes to whom I have pay GST?

Regards,
Sanjay

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Querist : Anonymous (Querist) 14 November 2021
Hi,

I am planning to buy ready to move resale flat. This building and said flat has not received completion certificate. Partial completion certificate is received for some flats and those flat owners received possession from builder. Society is also formed by those flat owners.
First owner has not received the possession letter from builder.

This building is joint venture between first owner (landowner) and builder.
First owner (Landowner) has got more than 10 flats in this building, and he has individual sale Agreement for all his flats. Now he wants to sale his flats as individual owner.

Individual flat 'Agreement of Sale' is there between builder and first owner in 2016. First owner has paid stamp duty and registration charges for sale agreement. During that period GST was not there. VAT is paid first owner and entire consideration is paid by first owner to builder.
I do not have to pay any payment to builder.

My question is - As this flat (which I am buying) has not received completion certificate and possession letter is not there with first owner (landowner) do I need to pay GST?
in first sale agreement total flat cost is 65 Lakh and I am buying it for 90 Lakh. I will be paying amount to first owner and not the builder.
Do I need to pay GST on addition cost of 25 Lakh?
If yes to whom I have pay GST?

Regards,
Sanjay

kavksatyanarayana (Expert) 14 November 2021
It is not advisable to buy such a property.

Querist : Anonymous (Querist) 15 November 2021
Hi kavksatyanarayana,
Thank you for your reply.
Building and Flat will gate completion certificate with in 30-40 days. Completion certificate is in process. Hence I am planning to buy this flat.
Just want to know GST impact on resale flat without completion certificate
Regards,

kavksatyanarayana (Expert) 15 November 2021
GST will be levied. Consult local CA for guidance or put this query on the platform of CAclubindia.

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