GST On Under Construction Property | Vkeel - Free Legal Advice

PRATIK POOJARY

Mumbai

I Would like to know how legally binding is the Cost Sheet given by the builder. I Booked my property in 2017 and at that time on the cost sheet approx 2.5 lakh was cleary mentioned as Other charges and 3lac towards Club house and Infra Charges each, and in the footnotes it was mentioned Tax will be applicable on Other charges. But now the builder has sent me final Demand letter with GST of 18% on the total amount of 2.5lac (Other charges)+6lac (Infra and CLub house) claiming the total other charges includes this amount. I found it misleading, bcoz the cost sheet cleary states what other charges were and in the agreement he included 6lac in the total other charges. Please advise

Expert's Answers(3)

Advocate Ankur Goel
Bangalore, Karnataka

7 Client Ratings

cost sheet is not legally binding. Agreement of Sale is only legally binding. You have to pay only as per Agreement of Sale.

June 8, 2021
xxxxx cxxxxx
Bengaluru, Karnataka

184 Client Ratings

Dear Sir Please contact the Chartered Accountant

June 6, 2021
Advocate Anik
Bengaluru, Karnataka

66 Client Ratings

Hi, After the 33rd Amendment made by the GST Council, the tax rate was slashed from 12% to 5%. However, this is only valid for a property without Input Tax Credit. An estimate is a non-legally binding document. It is an approximation of costs for a project, drawn up by a business to send to a client. It is not a promise. You need to provide the facts and documents related to this booking and we can find a remedy thereafter. Misleading ads by the builder are punishable under Consumer Laws. If you find this answer helpful please rate my answer. Thank you.

June 5, 2021