Hi Experts,
I bought a flat and its registration was completed in March 2017. Possession will be given in December 2017. Bank made 65% of loan payment on June 30, 2017 consdiering the construction status of flat.
Now builder is asking me for 12% GST on 35% of due payment. When I asked about Input Tax Credit he said raw material was purchased before June 30, 2017 so that will not be application.
As flat registration is completed before June 30, 2017 - 1% VAT is also not considered so on overall he is asking me to pay 7.5 extra taxes instead of 6.5% as flat registered before June 30, 2017 can not be considered.
Can you please suggest what he is saying is correct, if yes does bank need to provide me extra loan amount to pay excess taxes.
Please suggest.
Thanks,
Reddy
