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Gunavant patil (Engineer)     02 October 2017

Gst rate

Sir, I had book the 2 bhk flat in april 2017 at Nasik, Maharastra which will be completed in 2019 and bulider also registered in RERA. Now Bulider is asking GST 12% excluding Stamp duty@5%, Registration charges@1%. Kindly clarify ? what is GST rate is applicable for under construction apartment. with stamp duty and registration charges ? Regards, Gunavant Patil 8884185395


 6 Replies

K S   03 October 2017

Stamp duty and registration fees are paid to get tittle transfered on your name. For under construcrtion buildings, Instead of old service tax ( ST) and old Vaule added tax ( VAT) government has replaced with GST (Goods ans Service tax ). GST is not related with Stamp or registrations fees. GST is TAX on materials or goods or service for under construction projects only. The project which is complete and received occupancy certificate , No need to pay any GST.

Gunavant patil (Engineer)     03 October 2017

But what is GST rate excluding stamp duty , registration for under construction building . ?

Samal Kumar (ADVOCATE HIGH COURT OF KERALA)     05 October 2017

Actual rate for under construction flats is 18%. However, after adjusting 1/3rd of tax towards land value, effective rate of GST for under construction flats ( for which occupancy is not received ) is 12%. Refer paragraph 5 of Schedule II to the CGST Act which states that such transfer falls within the purview of supply of Services . Stamp duty is still applicable as it is not subsumed in GST. For ready-to-use flats, where occupancy was received before transfer, GST is not applicable.

Gunavant patil (Engineer)     05 October 2017

thanks sir.

Means GST applicable is 12 % only. excluding stamp duty and registration ?

As buyer when we have to pay the GST@12% i.e. at the time of possession or aggreement ?

Samal Kumar (ADVOCATE HIGH COURT OF KERALA)     05 October 2017

it is 12% only. You need to pay GST only at the time of transfer and registration. 

Gunavant patil (Engineer)     06 October 2017

Thanks Sir...

At the time of transfer and registration means aggreement  ?

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