GST CHARGEABLE ON HOUSING

GST rate applicable on housing stands reduced wef 01st April,2019 with effective rate being 5% on flats costing above 30 lacs and 1% on flats costing below 30 lacs. Builders can opt to charge the reduced rate of GST from this date by foregoing input credit. But in your case , as I can understand from what you have said, amount payable is a small portion which means the construction commenced much earlier where in the builder must have availed input credit on materials bought earlier. Reversing the credit will mean additional outgo on tax from the builder since there is no clarification from the Government on treating the credits availed earlier . If the clarification comes asking the builders to reverse earlier credit ( since he can charge lower rate of GST) it will hit him very hard. Hence this confusion among builders and reluctance to charge lower credit more  

View all 9 comments Below 9 comments
Dear Sir, Marathon Mulund has refused to lower GST more  
Please follow the rules between the lines. more  
It will take sometime to clean up the system and bring in transparency productively both for the builders and the consumers as well. more  
Dear mr SUBRAMANIYAM, Even big projects like CASA GRANDA refuse to adopt the lower GST more  
Yes. It calls for transparency and simplification. more  

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