How to recover GST paid while purchasing a flat

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How to recover GST paid while purchasing a flat

Hi,
I am purchasing a 3BHK flat in under-construction stage and the builder is charging a 12% GST(6.72L) on the total amount [Base price(52.5L)+amenities(3.5) prices].
Further, I heard that when I want to sell this flat I should not charge the GST for buyer.
My Question, if I can not charge the GST amount then I will have losses, so under this circumstance can guide me through the law on HOW to RECOVER my paid 12%[6.72L] GST. If there is no way of recovering this GST then I will drop the idea of the buying the flat.

Your advice is highly appreciated. Please Help me.

Profile photo of Anand K Asked By: Anonymous 6 replies 2 helpful answers Last Updated: 1 week, 3 days ago
  • Profile photo of Anand KAnonymous

    Hi,
    I am purchasing a 3BHK flat in under-construction stage and the builder is charging a 12% GST(6.72L) on the total amount [Base price(52.5L)+amenities(3.5) prices].
    Further, I heard that when I want to sell this flat I should not charge the GST for buyer.
    My Question, if I can not charge the GST amount then I will have losses, so under this circumstance can guide me through the law on HOW to RECOVER my paid 12%[6.72L] GST. If there is no way of recovering this GST then I will drop the idea of the buying the flat.

    Your advice is highly appreciated. Please Help me.

  • Profile photo of Ankita MathurAnkita Mathur
    Moderator

    Yes, GST cannot be charged by you as it is a sale after occupancy. As per law, GST will be applicable on under constructed buildings. But when it is occupied, GST cannot be made applicable.

    • Profile photo of Anand KAnand K
      Participant

      Then why I have pay such huge (12%) GST, is this without any benefit I am investing. Can you please advice whether buying as a 2nd buyer will have more advantage than buying as 1st buyer?

      • Profile photo of Ankita MathurAnkita Mathur
        Moderator

        This is the case of under construction flat. If you are purchasing a flat for the first time which has received completion certificate then GST will not be applicable. If you are going for an under constructed flat, then buying as second buyer will be beneficial. But in that case when you are taking any service for completing it, then again GST will be applicable.

  • Profile photo of sharath babusharath babu
    Participant

    i am also looking answer for this, please guide me for GST paid on under construction booked flat. whether the builder will claim nor customer, how it effects to the both parties else is it goes to govt only

  • Profile photo of sharath babusharath babu
    Participant

    hi friends, please share the TAX consultants numbers near dilsukhnagar area

  • Profile photo of Bayapuneni HitardhaBayapuneni
    Participant

    It is expected to appreciate more than the GST you paid by the time the construction completed. If it failed to appreciate, then you are at loss and your choice of flat is wrong.

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