A clarification has been issued by CBEC on its twitter handle @askGST_GoI to clarify the applicability of GST on under construction and ready-to-move-in properties.
It has been clarified therein that sale of ready-to-move-in or completed property, i.e. where completion certificate has been issued, does not attract GST. But in case of under construction property where entire consideration has been paid to the builder before 1st July, 2017 or the invoice has been raised before 1st July, 2017, service tax would be applicable at the effective rate of 4.5%and accordingly, no GST shall be payable on such transaction.
In case of part payment of consideration, service tax will be payable to the extent of invoices which have been raised before 1st July, 2017 or the consideration which has been paid before 1st July, 2017, and on the remaining portion, GST will become payable.