As per the current GST law, construction of a civil structure, complex, building intended for sale is considered a taxable service and liable for GST. However, GST is only applicable to the construction service if any part of the consideration is received before issuance of completion certificate. This simply means, GST is not applicable if the entire consideration is paid after the issue of the certificate of completion by a competent authority or after its first occupancy, whichever is earlier.
Hence, if you purchase a property directly from a builder and you pay any part of the consideration to the builder prior to the occupation, GST would be payable on the amount paid. On the contrary, if a property is purchased from the owner in a secondary transaction, then there would be no application of GST as the payment is being made after issuance of completion certificate or first occupancy.
From India, New Delhi
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