Builder charging 18% Flat GST chages, is it correct ?
I am buying an apartment from a prominent buider in Bangalore. I see in the final demand letter they are charging 18% flat GST against solar water heater and 18% flat GST for one year maintenance cost. When i googled i found that only 5% GST is supposed to be charged on water heater and no GST on maintenance upto 7500/- p.m.
When contacted builder he justifies that " New GST clause will applicable only for new projects after 1st April 2019. Hence Panorama is already received OC and we have to collect GST as per the our calculation."
I contacted GST council as well but no response from them, Is anyone aware of these charges are valid ? Any pointer where to get more help ?
Is the recently introduced RERA rules are not applicable for the builder ??? Government is a silent spectactor after introduction of the guideline. more
no GST on fully constructed house /flat . For partly constructed house , till 31st march ,it was 12% after passing full ITC benefit to consumer . So effectively it used to be around 5 to 6% . after 1st april GST rate reduced to 5 % with no ITC . Please act accordingly . more
This forum views all resource posts like yours posted .Many are interested in peoples problems and endorse support to the aggrieved . At the same time there are experts and experienced to give advise .
But the others who are not experts look forward to full informations from the resource posts .
Here what you googled and found that "only 5% GST is supposed to be charged on water heater and no GST on maintenance upto 7500/- p.m."
may kindly shared with an attachment .
Thank you , enjoy the circles , get benefitted and benefit other circlars. more
write in detail to the gst council and see their reply more
As per my knowledge, GST is only applicable for commercial transaction, buildings constructed only for residential purpose excluding any commercial use are out of GST ambit. I recall there a verdict given by Allahabad High Court most probably in May '16 in this regard. However 18% GST is absolutely high. We had faced the problem and asked the builder to mention GST account no. however, I do feel agree with you it is levied only for back up services, water supply etc. more