GST applicability for under construction property


Dear Sir, I have done aggrement in OCt.2014 and as per aggrement required registry and VAT was paid. After flat construction was delayed from builder end and now 2018 it is completed. I was taken loan amount 1600000 from bank and out of this 400000 was to be paid after completion. Does GST is applicable for remaining amount. Who has to paid. Please advice

Answers (1)


256 votes

Hi. VAT or GST is applicable on under construction property. Only when the property is completed in all respects and Occupation Certificate is granted by local body, that the liability to pay VAT or GST is dispensed with i.e. no more required. In your case if the building in which you have booked flat is still under construction then you are liable to pay GST on the consideration value or market value of the flat. It doesn't matter that the construction is delayed. For delay in completion of construction, you have remedy under RERA. If you wish to continue in the project then you can claim compensation and interest from builder for delayed possession on all the amounts so far paid by you including taxes. If you wish to withdraw from project then you can claim refund of entire amount paid to builder along with the taxes paid and also claim compensation and interest on those amounts from the builder.


Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.

Popular Property Lawyers


Advocate Rajesh Rai
Sector-19, Dwarka, Delhi
20 years Experience
Advocate Sunil Kumar Bakshi
Sector-16, Faridabad
33 years Experience
Advocate J. P. Rinwa
Swej Farm, Sodala, Jaipur
19 years Experience
Advocate Jaspreet Singh Rai
Greater Kailash 1, Delhi
17 years Experience

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at LawRato.com and has been responded by one of the Property Lawyers at LawRato.com to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at LawRato.com or contact a Lawyer of your choice to address your query in detail.

Related Questions


"LawRato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."



Related Articles