I have booked my Flat in June, 2017 under PMAY before GST and make a partial payment at the time of booking. The Home loan was sanctioned in the month of July post GST and builder got 70% of the Loan amount in July. Now its time for possession, the builder is asking for the remaining amount along with the taxes. He is asking for 4.5%+1% for the amount which I paid him in June before GST, that is OK. But he is asking for 12%GST on other amount. The question is that, my Flat is under PMAY, so the GST rate should be 8%. Please guide here.
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GST on the amount paid before june is not applicable at that time service tax was there so he is asking for that amount, After january 2018 the GST rates for the PMAY flats was slashed to 8 percent prior to that it was 18 percent only.
Further the applicable taxes are to be paid at time of payment only why is he raising demand now has builder paid taxes to government on your behalf?
I don't know... But what GST rate should I give to builder on the remaining amount?
The concessional rate of GST of 12 percent (effective rate of 8 percent after deducting one-third of the amount charged for the house towards the cost of land) will be applicable (from 25 th January 2018 for houses constructed or acquired under the CLSS for Economically Weaker Sections (EWS) / Lower Income Group (LIG) / Middle Income Group-1 (MlG-1) / Middle Income Group-2 (MlG-2) under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana (PMAY Urban).
On the payment you are making after 1 April 2019 1 percent GSt is applicable on affordable housing.
8 per cent would be effective from 25 th January 2018
8 per cent would be effective from 25 th January 2018
Booking and payment under previous invoices before April 1st 2019 will be charged at the previous applicable rate but from the April first 2019 reduced rate 7% should be charged an invoice issued please also note that the parking sold along with the flat will also be charged at the same rate
Dear Sir,
Please follow the below link for official notification
http://www.cbec.gov.in/resources//htdocs-cbec/gst/notfctn-01-2018-cgst-rate-english.pdf
No you should pay the effective rate only. He can't take 12 percent now
If you paid the full sale consideration amount before the applicability of GST (i.e 1st July 2017), then GST will not be applicable in such situation.However, as the transaction was done before the implementation of GST, service tax @ 4.5% has to be payable by the buyer in this regard.
No, for that time payment which is already made not GST applicable but VAT.
Rate has decreases to 5% now.
The effective rate on affordable housing was 12% initially, but it was reduced to 8% from January 25, 2018.
On 25th Jan GST council reduced GST rate from 12% to 8% for PMAY and CLSS homes.
Also, he cannot charge any GST on the amount which has already been paid to him as you have already paid VAT for it.
So, you should give a complaint to the GST anti profiteering authority in Delhi against the builder for charging excessive GST on you. NAA has the authority to deregister an entity or business if it fails to pass on the benefit of lower taxes under GST to the customer and the builder will come to his senses.
Regards.
We should not pay him any money now and rather file complaint against him based on the demands raised by him and let GAA decide it.
You are right that the GST @ 12% demanded by the builder especially when you come under PMAY category is excess to the existing rules, the GST will be applicable @ 8% only.
You can issue a letter to him refusing to pay the same @ 12% and state that you fall under the 8% category only as per rules.
The concessional rate of GST of 12 percent (effective rate of 8 percent after deducting one-third of the amount charged for the house towards the cost of land) will henceforth (from January 25) be applicable for houses constructed or acquired under the CLSS for Economically Weaker Sections (EWS) / Lower Income Group (LIG) / Middle Income Group-1 (MlG-1) / Middle Income Group-2 (MlG-2) under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana (PMAY Urban).
Under CLSS, the interest subsidy would be provided on home loans taken by eligible urban poor (EWS/LIG/ MIG-I/ MIGII) for acquisition or construction of house.
You can pay @ 8% for the remaining amount and not at the rate he demanded, may be he is not aware of the existing law in this matter.