Service tax and VAT impact after GST

Q: Hello,

I have bought 2 BHK flat in Pune before GST implementation.
Agreement of my flat is registered on 5th March 2016.

I have already paid more than 50% amount to builder before GST and paid service tax as applicable. (VAT was not paid.)
Before GST, service tax and VAT was applicable but after GST service tax and VAT is replaced by GST.

My builder is charging me GST @12% and VAT @1% both after GST implementation.
My question, Is VAT applicable after GST? Do i have to pay GST and VAT both after GST implementation?

I have asked same question to my builder and they replied as below.
VAT is applicable if agreement is registered after 1st April, 2010 and is to be paid in subsequent month
from the date of registration of agreement. Your flat agreement was registered in March 2016
whereas GST can into force in July 2017. Hence it was mandatory to pay VAT in your case.

If VAT is also replaced by GST and older service tax @4.5% and VAT @1% is covered under GST @12%
then please share me any goverment link or document where it is mentioned that
Service tax and VAT both are replaced by GST.

Thank You.

VPatel, Pune

7th May 2018

Legal in Pune

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Replies (2)

Here is an article based on your question. To get more details on it, click this link https://housing.com/news/gst-applicable-flats-booked-introduction-gst/

Nitesh Patil, Pune

8th May 2018

Comment

Hello VPatel
In case part of the money is paid to the builder before the introduction of GST, you would have paid service tax at 4.50 per cent and VAT as applicable in your state, on such payments. Hence, for under-construction flats booked prior to July 1, 2017, where the payments were made prior to the GST coming into force, the builder would have already recovered the service tax and VAT, applicable on such payments made. Even if the payment was not made prior to July 1, 2017, but the builder had already raised the invoice or demand, for either the full consideration or part of the balance amount, you would have paid the component of service tax and VAT on it, because as per the point of taxation rules 2011 applicable in case of service tax, the service tax is to be levied at the earlier of the two - the moment of payment or raising of invoice.

Vinay Sharma, Pune

8th May 2018

Comment

So, for the balance consideration, which remained unpaid and for which the builder has not raised an invoice, the builder will recover the GST at the rate of 12 per cent on the balance amount due.

Vinay Sharma, Pune

8th May 2018

Hello Vinay,

Thanks for the reply.

Could you please share me your mail id so that i can share my account details related to flat and give me more clarification in my case.

Thanks.

VPatel, Pune

23rd May 2018