What happens when part of the money is paid before the introduction of the GST law (i.e. 1st July 2017)?

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 percent and VAT as applicable in your state, on such payments. However, the rate of 4.50 percent service tax was under the composition scheme, under which the builders or developers were not entitled to take any input credit on the materials and services used in the construction. So, the entire service tax and VAT was loaded or recovered from the customers. 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.