GST on under-construction flat purchased from Investor / 1st Buyer

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GST on under-construction flat purchased from Investor / 1st Buyer

I’m considering buying an under-construction property from an Investor (who bought it from builder 1.5 years ago). DO I have to pay GST on this transaction? I’m the 2nd buyer

Profile photo of aditya Asked By: Anonymous 3 replies 0 helpful answers Last Updated: 2 months, 1 week ago
  • Profile photo of adityaAnonymous

    I’m considering buying an under-construction property from an Investor (who bought it from builder 1.5 years ago). DO I have to pay GST on this transaction? I’m the 2nd buyer

  • Profile photo of Ankita MathurAnkita Mathur
    Moderator

    Once the property is occupied, then its resale will neither be a supply of goods nor a supply of services as per para 5 of schedule II of CGST act. It is immaterial that it is an under-construction property. Therefore, you don’t have to pay GST on this transaction. If the property is not yet occupied, then GST will be applicable.

    • Profile photo of Mukul SharmaMukul
      Participant

      >>> Once the property is occupied, then its resale will neither be a supply of goods nor a supply of services as per para 5 of schedule II of CGST act. It is immaterial that it is an under-construction property. Therefore, you don’t have to pay GST on this transaction. If the property is not yet occupied, then GST will be applicable <<< consider first buyer have sale deed still gst is applicable ???

  • Profile photo of Mukul SharmaMukul
    Participant

    Hi Team, What do you mean by occupied here ?? ( ie how can one occupied the under construction company). If first buyer already have registered with builder and have sale deed then how will collect the GST ?? is it builder or first buyer ??

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