INPUT CREDIT NOT BEING PASSED ON BY BUILDERS
THE BUILDERS ARE UNABASHEDLY NOT PASSING ON ANY BENEFIT OF INPUT CREDIT ALLOWED TO THEM ON MATERIALS.
PREVIOUSLY THE GST RATE WAS 5% AND THE BUILDERS WERE NOT ALLOWED ANY INPUT CREDIT ON MATERIALS. THEN THE GST RATE WAS INCREASED TO 12% AND THE BUILDERS HAVE BEEN ALLOWED TO AVAIL THE INPUT CREDIT.
NOW BUILDERS ARE ENJOYING DOUBLE BENEFIT. THEY'RE AVAILING THE INPUT CREDIT WITHOUT PASSING ON ANY BENEFIT TO FLAT BUYERS. AS FAR AS THE LIABILITY OF GSTIS CONCERNED, BUILDERS SIMPLY PASS ON IT TO FLAT BUYERS. FLAT OWNERS ARE THE REAL LOSERS IN THIS WHOLE SAGA. THE COST OF A FLAT HAS ALREADY REACHED OUT OF THE REACH OF COMMON MAN, NOW THIS EXTRA
BURDEN OF INCREASED GST IS JUST KILLING THE FLAT BUYERS.
IF BUILDERS ARE NOT READY TO PASS ON THE BENEFIT OF INPUT CREDIT, THE BUILDERS SHOULD NOT BE ALLOWED TO AVAIL IT & THE GST RATE SHOULD BE BROUGHT DOWN TO
5% TO GIVEN RELIEF TO FLAT BUYERS. more
we are expert in making things more complicated instead of easing. The main reason no one trust any one. more
For any rule framed with all the due precautions, there are many many brains working to circumvent it. I don't think that the govt has framed these rules to help themselves. more
Yes, it is a fact - "input Credit is not being passed on by the Builders" more
The government is only to be blamed in this case. When it was not a secret as to how greedy and dishonest our builders and real estate developers are, what made the government and specifically the finance ministry to hike GST from 5% to 12% and allowing them input credit ? Was not it a cleverly taken decision to indirectly encourage the builders/developers to resort to dishonest practices depriving the purchasers and quiz money from them to meet political ends ? more
When the restaurant owners did not passed the Input Tax Credit to customers, GST was reduced. Similarly for real estate, GST should be reduced and ITC should be withdrawn. Unfortunately this real estate sector contribute heavily to politicians & political parties. So this will not be changed till 2019 elections are over. This is the sad truth. more