I will request you to inform the builder that you do not intend to buy the same property, and stop the payment from the bank, immediately you will see wonders happening around you, the builder will come begging to you, and until and unless you know how to play and get deals cracked, it will be hard for anyone to set a deal, its a normal practise of builders after booking amount is cleared, and also seek for booking amount return, you can try him before consumer forum too, there are several judgements against builders.
How to avail 8% GST on PMAY-CLSS scheme
I have booked a flat in Kolkata on 6/6/2018. The flat is on under-construction. I have applied for a home loan of Rs.24 lakh from AXIS Bank which is yet to be disbursed. Now as per the eligibility criteria, I fall under MIG-I category of PMAY-CLSS scheme. The rate of GST for under-construction flat which would be eligible for PMAY is 8% instead of 12%. The AXIS Bank usually applies for PMAY-CLSS subsidy to National Housing Bank after full disbursement of home loan. The application takes few months of time to get approved. Again, the bank also registers the flat after few days or on the same day of full disbursement of loan. Now I shall have to clear all the GST dues to the builder before registration of the flat otherwise it will may charge penalty. I ask the builder to pay 8% GST but he insists on 12% gst. But he argues that I shall have to show the sanction/approval letter of CLSS subsidy. Then how can I avail benefit of 8% GST? I shall have to clear GST before registration at the time of full payment of loan or few days later. Again bank will apply for CLSS subsidy after full disbursement of loan. Give me advise with explaining relevant document.
Asked 7 years ago in Taxation
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3 Answers
You need to pay 8 percent gst only. even if you pay 12 percent you cna legally demand refund from builder
A civil structure or any other original works pertaining to the “houses constructed or acquired under theCredit Linked Subsidy Scheme for Economically Weaker Section (EWS)/ Lower Income Group (LIG)/ Middle Income Group-1 (MIG-1/ Middle Income Group-2 (MIG-2)” under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban) attracts concessional GST of 8% (provided value of land is included in the price of the house).
To avail the CLSS benefit, the interest subsidy will be credited to the loan account of beneficiaries through Primary Lending Institutions (PLIs), such as, banks, etc resulting in reduced effective housing loan and Equated Monthly installments (EMI). According to the said guidelines, PLIs such as banks, housing Finance corporations, NBFCs etc.are required to register with Central Nodal Agencies (CNAs). The CNAs are required to release subsidy under the scheme to the PLIs in respect of loans sanctioned by them to borrower/ beneficiaries. The PLIs are required to provide each borrower/ beneficiary a statement, which will make him/ her understand the amount given as subsidy, how the subsidy has been adjusted and the impact of the subsidy on his/ her monthly installments (EMI). PLIs will also provide the utilization/end use certificate and also a certificate in relation to the physical progress of the construction of the housing unit financed under the scheme to the CNAs on a quarterly basis. Thus PLIs are closely involved in the implementation of the CLSS Scheme. MHUA may prescribe a certificate by PLIs on the basis of which the builder may charge reduced rate of GST on houses constructed/acquired under CLSS.The certificate may be addressed to the beneficiary with a copy to the builder, certifying that the borrower is a beneficiary of the CLSS. The certificate may contain relevant details such as the name, address, account number of the borrower, complete address and other details of the housing unit for which the CLSS benefit has been granted, Aadhar number.
