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Can GST be charged on the earnest money and brokerage of a flat


10-Apr-2023 (In Property Law)
i had booked a property with a builder in Haryana. i wish to cancel my investment. The builder has my money for over 4 years now. when i applied for cancellation of property he gave me a lis of deductions applicable which are earnest money+ 18 % GST on earnest money+brokerage paid + 18% GST on Brokerage paid. My question is can the builder charge me GST on the earnest money and brokerage paid. No builder buyer agreement has been signed by me with the builder yet. i have only signed the booking letter.
Answers (3)

Answer #1
764 votes
Hello Client hru

I have read Ur query as per which Ur earnest money is been lotted by the builder on the name of deduction as well as taxes on deduction as well as brokage along with GST deduction.in this matter u have take go to court then only u will be able to get Ur money back otherwise they will deduct the amount bwitjout any reason for which they are not at all.authorised.
Answer #2
921 votes
It is better to file a consumer case if the property hasn't been handed over to you till date. You can claim your money back along with the interest.
Plus, he cannot charge GST or any such thing as deductions regarding the money being paid to you.
Answer #3
889 votes
You can file a complaint before RERA authority. You will get compensation from the Builder and also your money will be returned. You can file a complaint before RERA authority. You will get compensation from the Builder and also your money will be returned

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