Builder Charging GST on Full ₹60L Flat Value – Isn’t Only 2/3rd Taxable?

Hey everyone,

I’m buying an under-construction flat in Tamil Nadu with a total agreement value of ₹60 lakhs. The builder has raised an invoice applying 5% GST on the full ₹60L, which comes out to ₹3,00,000.

But from what I’ve read (specifically Notification No. 11/2017 – Central Tax (Rate)), GST should only be charged on 2/3 of the total value, since 1/3 is considered land value and is exempt.

So based on that: • Taxable value = ₹60L × 2/3 = ₹40L • GST @ 5% = ₹2,00,000 • But builder is charging ₹3L, so ₹1L excess?

I asked the builder for a corrected invoice, but they said this is the “standard way” and refused to revise it.

Would appreciate any insights or even how to escalate this. Thanks in advance!