GST ON HOUSING NOT REDUCED
I have purchased a flat in Piramal Revantha, Mulund West with Piramal developers. Its carpet area is more than 750 square feet. With recent reduction in GST rate on Housing, I should have gotten reduction in GST rate on remaining amount to be paid to builder. But builder is refusing to reduce my GST rate stating that Input Credit Tax is not available now.
Please help in understanding this or if builder is cheating. more
You have not specified whether it is Under construction OR already COmpleated, as the GST differ in either of it.
In case the flat is compleated with OC then 12% GST is applicable else it is 5% for under construction. more
Please go through the revised conditions. It seems the builder is correct. more
If it is 12% then it is ok,as they have the option to charge. more
Ongoing projects have an option to continue to charges old tax rate with input tax credit (ITC) or to charges new tax rate without ITC.
But if he is charging old rate then he need to pass on the benefit to consumer for GST that means either he needs to reduce the base price of bare GST himself. but this applicable only if project was started before GST. If your project started post GST then this clause is not applicable.
There is anti profiting cause if he is charging GST to consumers. more
Yes, for projects completed before 31st Mar 2019, old GST is still applicable if developer developer sticks to it without switching to new gst more