Gst of 5% in sale deed value for finished house

Venkatesh (Querist) 25 January 2022 This query is : Resolved
My builder is selling a finished house for 32 lacs to me. But asking GST of 5%etc. But he no where mentioned in sale deed that GST value. I believe for finished house no gst applicable. But what he is saying, until occupancy certificate received and property tax paid, it won't considered finished property. So tax should be paid. Please suggest. Is it correct statement?

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A buyer is questioning whether a 5% GST is applicable on the sale of a finished house priced at 32 lacs, as it wasn't explicitly mentioned in the sale deed. The builder claims GST is due until the occupancy certificate is issued and property tax is paid. Advice suggests consulting a local chartered accountant or tax lawyer, as GST rules for affordable and non-affordable housing differ, and the builder's costs (like land purchase and construction) may influence the tax liability.

Dr J C Vashista (Expert) 26 January 2022
I think there should not be any GST on such house.
Consult a local chartered accountant / lawyer practicing tax matters

kavksatyanarayana (Expert) 26 January 2022
Yes. Better to consult a local CA. It is known that affordable Housing is 1% without ITC (input tax credit) and Non-affordable Housing is 5% without ITC.

Sri Vijayan.A (Expert) 30 January 2022
He might have bought the vacant land, built the house.
So, the GST would be there.
But the thing is who is to pay the tax. It is to be negotiated and settled.

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