GST for resale of under construction flat from first owner

Once, when I was reselling my under construction property, I was wondering about GST on resale of under construction property

. I got help regarding this from my neighbor who is a lawyer.  

He told me that

the

. Moreover, you must check below points: 

• Sale Before Issuance of Completion Certificate:

  If you are selling the property before the issuance of the completion certificate, it is a supply of under-construction property. You are required to pay a 5% GST for under-construction residential properties

• Sale After Issuance of Completion Certificate:

  If you are selling the property after the issuance of the completion certificate, it is a sale of a completed property. This sale of a completed property is completely exempt from GST.

• Stamp Duty and Registration Charges:

  While GST is not applicable if there is a sale of completed property, buyers would still be required to pay stamp duty and registration charges during the resale process.

I have tried to explain about

GST on resale of under construction property

what I have learned from my neighbor. 

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• Additional taxes applicable.
• Difference amount that need to be pay.
• VAT applicability at the time of purchase.

• You don’t need to pay any additional amount at the time of resale of flat.
• Also, there is no such difference amount that need to pay by you.
• To have clarification regarding the VAT applicability, kindly contact to the state tax authority.

Hey buddy,

GST on resale flat is 12% in case it is under construction. However, GST doesn’t apply to the resale of an old property or the sale of a completed property (where a completion certificate has been issued).

From April 2019, the GST Council cut the tax rates from 12% to 5% on residential properties and from 8% to 1% for the affordable housing segment. However, no ITC benefits would be available under the new tax rate policy. 

I hope you like my answer on GST on resale of flat that is under construction.

Thanks!