How will GST will applicable to builder?

Q: Is GST applicable on property after I get Occupancy Certificate from the builder?

Padma G, Mumbai

16th August 2018

Property Tax in Kharghar, Navi Mumbai

gst

gst on commercial properties

gst for ready-to-move-in properties

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Replies (2)

I agreed with the Padma. Ready to move in an apartment are exempt from GST. GST is only applicable on under construction House but the owner will get the Input credit only on the construction part.

But since developer have to pay GST on the whole project and he or she will get credit only on construction cost consequently the rates for whether under construction or ready to use house cost will hike on the proportionate basis, in order to link the gap.

pradyumanapte, Mumbai

24th August 2018

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Hi Padma,
Once occupancy certificate is issued for a project, no GST is applicable on it. It is similar to previous laws of vat and service tax where vat and service tax were not to be charged after receipt of Occupancy Certificate.
But remember if you have already paid some amount before the receipt of Occupancy Certificate, then GST will be applicable on it.

Shalini Parikh, Mumbai

24th August 2018

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