Is VAT applicable for under construction property before June 2017 but getting registered in July 2017?

Q: I bought a flat in Hyderabad telangana for which all payments have been completed before June 30th 2017. However i waited for registration to be done in July post GST thinking that VAT which is to be paid pre-GST will get subsumed in post GST period. However my builder is still insisting on paying up VAT? Can anyone please confirm if there is a need to pay VAT now ?

gaurav, Apartment Resident

24th July 2017

Property Tax in Hyderabad

vat

input credit

is vat applicable for under construction property?

Follow Discussion

Also see discussions for

Hyderabad Property Tax Property Tax in Hyderabad

Replies (2)

No, you do not have to pay VAT for your flat. You have to Pay only Stamp Duty - 4.5%, Registration Charges - 1.50% and transfer Fee - 0.50%.
Your builder has to pay VAT and later apply for the Input Credit and later he will pass it on to us.

Ramesh Hegde, Hyderabad

20th November 2017

Comment

Hi Gaurav,
It is builder responsibility to pay VAT and service charges for an under construction property. For that builder will get the tax credit for GST. But these tax credits will not be applicable to projects that are under construction, nearing completion or ones that are ready. And further, they will have to pass those credit benefit to the buyers.

Ramya Janagam, Hyderabad

20th November 2017

Comment