GST on booking of new residential flats
What are the provisions of GST applicability to booking / buying a flat in a new building? We are being told by a builder that GST at the rate of 18% is payable by the person who books a flat with him. Is this correct? At this rate, the GST on a flat costing Rs 70 lakhs would amount to Rs 12.60 lakhs additionally which looks to be prohibitive. Kindly advise the relative provisions. more
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Can anyone question Gabbar singh when he orders to pay taxes?This is G S T and it is for gabbar and his henchmen in Govt to live their luxurious lifesytyle. It has nothing to do with Common man's problems or their difficulties.This 'one country one tax' is a superb concept for the taxpayer but the rules and amendments made are just draconian and meant to help the 'inspector raj' and may be it may help to terrorize the citizens from opposing anything. more
Dec 11
Till now no builder has been transparent in showing Input Tax Credit, to reduce the flat cost. Govt should now think seriously. Similar to Restaurants, ITC should be withdrawn and a lower GST should be done. more
Dec 08
Actually, GOI has thought that the builders would pass on the amount equallent to input credit to flat buyer, so that the flat buyer would need to pay 18% on value addition ( subject to deduction of land cost equallent 30% of total flat cost), but in reality, no builder would want to pass on the benefit of input credit, hence the flat buyers are bound to pay 12% (approximately) effectively on total flat cost (including land cost). However, if people wait till completion of the building and would like to buy ready to occupy flats with occupancy certificate, then the buyer need not pay any GST... Hence, my advice is to wait till completion of the construction of the project and buy the ready to occupy flats rather booking and buying under construction flats. Then builders also under pressure to liquidate the inventory as fast as possible, in the process the flat buyers also get a good bargain... more
Dec 08
The rate is 18%. However, after deducting 30% as land value component, it works out to 12%. In your case, the GST should be Rs.8.40 lakhs, assuming that the builder has passed on all the GST credits which he received on the inputs used in the construction of the building. more
Dec 08
For new flat the builder should deduct 30% towards land deduct 6% from GST THEREFORE THE EFFECTIVE RAYE WILL be 12% the builder should further deduct credits of gst paid on material and payment to contractor more
Dec 08
