Land owner selling his share of flat

Hi,

If you, as a land owner, sell your share post receipt of the completion certificate, no GST shall be applicable.

Subsequent resale of flat by landowner to buyer is not liable to GST.

Thanks & Regards,

Payal Chhajed

Dear Sir,

If you have already received completion certificate, then GST is not applicable on subsequent sale.

Accordingly, you are not required to charge GST on flats to be sold to buyer .

Warm Regards,

Karishma Chhajer

Hi

When are you planning to sell your share of flats?

If the flats are sold after receipt of completion certificate, there shall be no applicability of GST and hence no ITC.

However, if flats are sold before completion, GST shall be charged to buyers and ITC can be claimed.

Dear Sir

Replies are as under :

1.GST to be connected @18% from buyer

2. Yes.You can claim input tax credit on GST paid to your builder.

Hope This clarifies.

However, you are selling flats without completion certificate then 18% GST to be levied on flats and claim itc accordingly.

Hi,

If you are selling the flats after completion of the property, then you don't need to pay any GST. GST is not applicable on ready to move property.

If you sell the property, before completion, then you will have to pay GST and you can claim ITC of the GST paid to the builder. Make sure you register yourself in GST before paying GST to the builder.

YOU ARE LIABLE TO PAY GST TO THE BUILDER IF YOU BUY FLAT FROM BUILDER BEFORE THE RECEIVING OF COMPLETION CERTIFICATE FROM THE COMPETENT AUTHORITY ONLY

IF YOU BUYS AFTER COMPLETION CERTIFICATE NO GST WILL BE LIABLE ON YOU

YOU CAN NOT COLLECT ANY GST FROM SELLER BECAUSE WHEN YOUR SOLD FLATS TO SELLER IT NOT AND GOODS/SERVICE AND GST IS NOT APPLICABLE ON THAT TRANSACTION

Hi,

GST is not applicable if the completion certificate has been received.

Accordingly, you should not charge GST on flats that you intend to sell.

Regards,

Nikhil.

No, the builder is not correct.

GST shall be charged @18% only on the undivided land of builder's share.

Further, there are other methods to calculate. But, the builder's approach is not correct.

Hi,

Builder's calculation is not correct.

GST can be levied using any of the below suitable method:

1.Open market value of the Construction services or 2) 70% of undivided share of land in your case 3) Like value of similar flats 4) Cost of Construction + 10%

No, it is not correct.

Builder is adopting wrong approach.

In an Area Sharing JDA the developer provides construction services to the landowner. The valuation of such a supply would depend on the open market value of the service. In a Revenue Sharing JDA the landowner's service would be valued as equal to the amount of consideration received from the developer. Tax rate of the landowner and well as developer's service is 18%.

Under constructed flats when sold by landowner to the consumer will attract 18% GST and an abatement for value of land amounting to 1/3rd of the total value would be available thereby reducing the effective tax rate to 12%.

No the builder is not correct.

Dear Sir,

Builder will collect GST only on your share and not on total amount. GST @18% will be collected on 2/3 rd value of the flat as 1/3rd value is to be deemed as value of land. No collection of GST on sale of flat after receiving completion certificate from the authority.

Thanks

Dear Sir,

Builder is not correct.

He can only collect GST only on your share i.e. 18% will be collected on 2/3 value of the flat as 1/3 value is to be deemed as value of land .

However, no GST will be levied on post receipt of completion certificate in case of subsequent sale.

Warm Regards,

Karishma Chhajer

YOUR QUESTION IS NOT CLEAR

Dear Sir,

It needs to be seen if the builder is transferring the apartments in your name under sale deed as he is collecting GST from you.

GST is not payable in case of resale of property. Based on that you cannot collect GST from the buyer.

GST is applicable on under construction projects only. GST is not applicable on sale of land. In case you have sold land to the builder then you need not pay GST on land value.

The recourse here is that you can find buyers and make a agreement between buyer and builder wherein the buyer pays the GST directly to the builder.

Hope these resolves your queries.

GST is applicable on under construction property @ 18%. But when completion certificate is received ,no GST is payable neither you can charge GST from buyer for sale of Ready to move in property.

No ,Builder can collect GST on 2/3 share only, not on full value.

Hi,

GST is applicable only for under construction projects .Builder can collect GST only on your share and not on total amount.No GST will be levied on post receipt of completion certificate in case of subsequent sale.

He is not correct.

Thanks & Regards,

Payal Chhajed

we have to study copy of agreement between your and your builders

As advised earlier, the builder is not correct. GST is applicable only for under construction projects. No GST will be levied after receiving the CC.

Hope that clarifies.

Regards,

Nikhil

Yes, you will have to pay GST for construction services.

GST can be levied using any of the below suitable method:

1.Open market value of the Construction services or 2) 70% of undivided share of land in your case 3) Like value of similar flats 4) Cost of Construction + 10%

Dear Sir,

Yes, you will have pay GST for construction services.

However, no GST will be levied on post receipt of completion certificate in case of subsequent sale.

Warm Regards,

Karishma Chhajer

Builder approach is not correct,No GST can be levied for ready to move in property.

Dear Sir,

As per law, GST needs to paid in the year in which the developer hands over the rights/possession to the land owner through allotment letter/conveyance deed.

As per your case, since the construction is not completed you will have to pay GST 18% on construction service provided by the builder upon receipt of possession.

Concluding, you will have to pay GST on construction cost to the builder/developer.

GST is applicable on under constructed buildings and not on ready to move property. In case of JDA, land owner needs to pay GST on builders share.