What is the consequence if a seller provides an incorrect GST Certificate?

When a seller provides an incorrect Goods and Services Tax (GST) certificate, the seller becomes liable for the GST because the certificate typically serves as an indicator of the seller's tax status and responsibility. The GST certificate is essential in a real estate transaction as it confirms whether the seller is registered for GST and whether the sale is subject to GST.

If a seller issues an incorrect certificate, it misrepresents their tax obligations. In this scenario, should the buyer later be held responsible for paying GST as a result of the incorrect information, the seller is held liable for that tax, including any additional penalties or costs incurred due to the error. Such liability underscores the seller's responsibility to ensure that all tax-related documentation is accurate and compliant with regulations at the time of the transaction.

Consequently, this reinforces the importance of due diligence on the part of sellers to provide correct documentation, as any inaccuracies could lead to financial repercussions impacting them, rather than the buyer.