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Ramalingam

Ramalingam Kalirajan  |7281 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 03, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
zia Question by zia on Jan 13, 2024Hindi
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Dear Sir, I purchased a shop in October 2022 . I paid the required amount as declared in registeration papers ( stamp duty, registeration , sale deed etc. ) However, the builder addiotnally asked for Rs. 57,000/- towards GST to be paid in cash. At the time of registeration I paid only Rs. 50,000/- in cash. Thats why the builder didint issue any GST invoice. When I paid the balance Rs. 7,000/-, the builder issued a hand written letter certifying that Rs. 7,000/- only have been received towards GST ( and not Rs. 57,000/- which I actually paid). He didi not even mentioned his GST number in that letter. There is no GST invoice from any government deptt. My questions is, whether the builder can issue a hand written GST invoice without mentioning his GHST number ??. As far as I know, all GST amounts are are paid to the Givernment and not any any individual.

Ans: It's concerning that the builder issued a handwritten letter for GST payment without providing an official GST invoice or mentioning their GST number. According to GST regulations, all transactions involving GST must be accompanied by a valid GST invoice issued by the registered supplier, containing their GST number.

In this case, the absence of a proper GST invoice raises questions about the legitimacy of the transaction and whether the GST amount was appropriately accounted for and remitted to the government. Handwritten letters without proper documentation may not suffice as valid proof of GST payment.

To address this issue, I recommend seeking clarification from the builder regarding the absence of a formal GST invoice and their GST registration details. If the builder is registered under GST, they should be able to provide a proper GST invoice with their GST number for the amount paid. If they fail to do so or provide insufficient documentation, it may be prudent to consult with a legal advisor or tax expert to explore further steps to ensure compliance with GST regulations and protect your interests.
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