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Mumbai : Is MVAT and GST payable ? OC just received


Mumbai : Is MVAT and GST payable ? OC just received

Last updated: March 29 2019
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  • Mumbai : Is MVAT and GST payable ? OC just received

    My query is complex and my CA does not know the answer.

    I decided to purchase a property in Mumbai in 2011, making 10% slab payments along the way, then Service tax came in and had to pay that which was about 4%

    9th slab payment was back in 2017 just before GST, so I just had to pay service tax.

    Being an NRI I registered the agreement in Jan 2019 and the final slab being on possession.

    The builder is saying that MVAT needs to be paid * 1% but after speaking to some legal experts, its a bit of a grey area.

    Service tax /VAT has been amalgamated into GST

    On the final slab payment I would have to pay GST, which will be reduce as of 1st April to 5%. The builder will send out the demand letter shortly after this.

    Now interestingly OC has just been received 10 days ago, meaning that the property is no longer under contruction.

    My question is

    1) Is VMAT payable, my CA told me not to pay this to the builder but to the Government. The builder said they had paid everyone VMAT, but when I asked for the challon, they ignored this. Can it be they just want an extra 1% for their pocket?

    2) Is GST payable on the final slab as now OC has been received. If it is, then I expect this to be at the reduced rate of 5%.

    Thank you for your help.

    Last edited March 16 2019, 06:26 PM.
  • #2


    Re : Mumbai : Is MVAT and GST payable ? OC just received

    Its upto the builder whether to charge 12% gst or 5% gst for projects launched before april 2019.please read notification dated 19 th marchMarch by gst council


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