You are eligible for 5 percent gst on remaing payments.Ask builder for benefits for ITC benefits if he refuses complaint before GST commissioner.
Gst
Hi Team, Good Afternoon!! I purchased a under construction flat in July 2018 and the flat is still under construction. It may take more two months for giving handover. I have paid 90% of the amount with 12% GST till March 19. Now my question is Am I eligible for 5% GST (for old and remaining payments ) as the flat is not ready by 31/03/2019. Also my builder is not ready to PASS any ITC benefits to us. Could you please help me with the Situation.
Asked 6 years ago in Property Law
Religion: Hindu
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9 Answers
You will be eligible for 5 percent for balance payment
Builder is not ready to pay ITC. The actual project started before GST era. Am I still eligible for ITC? If so how can I proceed?
Asked 6 years ago
for balance payment made by you after 1st April 2019 you have to pay GST at 5 per cent
1. on and from 1.4.19 the builder is given a choice whether to charge GST @12% with ITC benefit to buyer or charge GST@5% without any ITC benefit to buyer
2. if the builder is charging you 12% then obviously you are entitled to the ITC benefit
3. if he does not pass on the ITC benefit then you can move before the National Anti Profiteering Authority and file complaint against the builder
4. even if the project may be of pre GST era, once the builder has migrated to GST and has obtained GST registration certificate and is also charging on basis of GST regime, then all the more he is liable to pass on the ITC benefit to you
You need Approach rera for the same
Yes still eligible for ITC benefits you can complaint before Commissioner of GST.
you have to pay only GST 5℅
The latest reduction in GST will be applicable form the date of its effect and not retrospective effect.
As per the decision taken by the GST Council, the developers of residential projects which are incomplete as on March 31, 2019, will have the option either to choose the old structure with ITC or to shift to the new 5% and 1% rates, without ITC. Builders will get a one-time option to continue paying tax at the old rates (effective rate of 8% or 12% with ITC) on ongoing projects (buildings where construction and actual booking have both started before April 1, 2019, but which will not be completed by March 31, 2019).
The new tax rate of 1% for affordable houses and 5% for others, without ITC, will apply on new projects.
The new tax rates of 1% and 5% shall be available, subject to the condition that ITC shall not be available and that 80 per cent of inputs and input services shall be purchased from registered persons. Any shortfall in purchases according to these norms, would be levied a tax of 18 per cent. Tax on cement purchased from unregistered person shall attract a 28% duty.
The meeting deliberated on the transition provision and related issues for the implementation of lower GST rates for the real estate sector. The Council had, in its last meeting on February 24, 2019, slashed tax rates for under-construction flats in the affordable category to 1%. The GST rate on other categories was reduced to 5%, effective April 1, 2019. GST rates for new projects will be mandatory from April 1, 2019.