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GST on Under Construction Property - Partial Payment Already Done?

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an anybody let me know about the taxes after 1st July, 2017 -

I have bought a under construction property in Pune for which partial payment (around 70%) payment has already been made to the builder. Remaining is 30% that will go as per the construction progress.

Few builders including mine are telling consumers that the payment that is made after 1st July 2017 (remaining 30% in my case) would be liable for GST and the difference in the amount based on the current and new tax structure should be paid by the consumer. I have also read a circular from government of India that builders are advised to pass the benefits of input tax credits to buyers under Section 171 of Anti Profiteering Clause of GST law.

posted Feb 12, 2018 by Diya Borda

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1 Answer

0 votes

Yes you are correct, however the quantum of input tax credit will depend on the amount of construction progressed. Considering that you have already paid 70% means that the project must already be in advance stages. This leaves less chance of input credit to be passed on to customers if any

answer Feb 13, 2018 by Navya
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