Archive · 28 Jun 2025
GST on Ready-to-Move Flat Purchase Explained
If you bought a flat and paid money before the building got its final certificate (occupancy certificate), then you have to pay GST.
Even if the flat is ready to move in, because you paid some money beforehand, GST applies.
The article confirms that GST at 5% was correctly applied in this case, according to tax rules.
So, the GST amount paid is as per rules.
A buyer purchased a flat in December 2024.
An advance was paid before the occupancy certificate was issued.
The occupancy certificate was issued on December 31, 2024.
A sale agreement was entered into in January 2025, including GST.
A chartered accountant confirms GST applies to the purchase.
- Who
- A buyer and seller of a flat, with a Chartered Accountant providing clarification.
- What
- GST applicability for a flat purchase.
- When
- The purchase occurred in late 2024 and early 2025.
- Where
- X venture.
- Why
- To clarify the buyer's question about GST on a flat purchase.
Buyer's View
Tax Expert's Clarification
GST Applicability
Buyer's View
GST is not applicable for ready-to-move flats.
Tax Expert's Clarification
GST is applicable due to advance payment before occupancy certificate.
- Token Advance Date
- December 3, 2024
- Occupancy Certificate Date
- December 31, 2024
- Sale Agreement Date
- January 18, 2025
- Total Sale Consideration
- ₹1,40,80,710
- GST Amount
- ₹6,70,510
- GST Rate
- 5%