Why a headline price is not enough
A quotation should state whether the displayed home price includes or excludes applicable GST. Also identify separately billed services or deposits rather than assuming every item attracts identical treatment. The project’s starting figure cannot establish the tax amount for every buyer.
Check the invoice and payment stage
Ask the promoter to explain the tax basis for the exact home and the instalments being collected. Keep the demand letter, tax invoice and payment receipt together. Your accountant can reconcile those documents with the agreement and the rules applicable to the transaction.
Use the current official guidance
This page deliberately does not hard-code a GST percentage into the project cost. Review the current CBIC guidance and obtain a written clarification from the promoter or your tax adviser before budgeting. The relevant facts include the property category, transaction structure and completion status.
Keep these details in view
- Tax-inclusive or tax-exclusive quotation
- Applicable classification and tax basis
- GST identification details on invoices
- Treatment of cancellation or credit notes
- Confirmation from a qualified tax adviser
Current official tax information: Central Board of Indirect Taxes and Customs.