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)

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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.

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