Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
CO-PRESENTED BY
LIVE TV DownloadNews18 App
News18 English
272
nda:
Needmore seats to Win
Needmore seats to Win
upa:
»
3-min read

Home Buyers to Pay 12% GST on Balance Due if Completion Certificate Issued by March 31

Builders who have received completion certificate for an ongoing project before April 1, 2019, will have to charge 12 per cent GST from buyers on the balance amount due towards purchase of the flat.

PTI

Updated:May 15, 2019, 11:42 PM IST
facebookTwittergoogleskypewhatsapp
Home Buyers to Pay 12% GST on Balance Due if Completion Certificate Issued by March 31
Representational photo
New Delhi: Home buyers will have to pay 12 per cent GST on balance amount due to the builder if the housing project has been granted completion certificate by March 31, 2019, the CBIC has said.

Builders who have received completion certificate for an ongoing project before April 1, 2019, will have to charge 12 per cent GST from buyers on the balance amount due towards purchase of the flat.

Issuing the second set of FAQs for real estate sector, the Central Board of Indirect Taxes and Customs (CBIC) said that builders will not be able to adjust the accumulated credits in ongoing projects in case they opt for lower new GST rate of 5 per cent for normal and 1 per cent for affordable housing.

The first set of FAQs for real estate sector was issued last week to clarify doubts with regard to migration of real estate developers to new GST rates for the sector which has come into force from April 1, 2019.

The GST Council, headed by Finance Minister Arun Jaitley and comprising state counterparts, had in March allowed real estate players to shift to 5 per cent GST rate for residential units and 1 per cent for affordable housing without the benefit of input tax credit (ITC) from April 1, 2019.

For the ongoing projects, builders have been given the option to either continue in 12 per cent Goods and Services Tax (GST) slab with ITC (8 per cent for affordable housing), or opt for 5 per cent GST rate (1 per cent for affordable housing) without ITC and communicate to their respective jurisdictional officers the same by May 20.

To a query on what shall be the rate of GST applicable on projects in respect of which occupation certificate has been issued prior to April 1, 2019, but the balance demands are pending, the FAQ said: "Time of supply of the service by way of construction of apartments in such projects falls prior to April 1, 2019, and accordingly the rates as existed prior to April 1, 2019, would apply to such balance demands."

AMRG & Associates Partner Rajat Mohan said, "This clarification has tightened the grip on taxpayers who intended to take benefit of lower taxes rates with the aid of deferred invoicing."

On whether accumulated ITC can be adjusted against new tax liability of 5 per cent and 1 per cent, the FAQ said: "No. GST on services of construction of an apartment by a promoter at the rate of 1 per cent/ 5 per cent is to be discharged in cash only. ITC, if any, may be used for discharging any other supply of service."

"Developers opting for new tax regime for ongoing projects now has another reason to refrain from new scheme," Mohan said.
The CBIC further clarified that exempted goods procured by a builder under the new tax regime would not be counted within the 80 per cent limit set for procurement from registered dealers.

"This could entail an additional tax of 18 per cent on value of exempt supplies, credit of which would not be available to developers," Mohan added.

While deciding on lower GST rates for real estate sector, the Council had said that at least 80 per cent of the inputs should be procured from registered dealer.

The CBIC has also clarified that developer and not the land owner will have the right to decide whether to opt for new GST rates or stick to old rates for ongoing projects.

EY Tax Partner Abhishek Jain said: "Clarifications on some technical ambiguities like non-applicability of new rates for projects completed before April, 2019, valuation of TDR, etc should help resolve some involved issues for this sector."

(Get detailed and live results of each and every seat in the Lok Sabha elections and state Assembly elections in Andhra Pradesh, Odisha, Arunachal Pradesh and Sikkim to know which candidate/party is leading or trailing and to know who has won and who has lost and by what margin. Our one-of-its-kind Election Analytics Centre lets you don a psephologist’s hat and turn into an election expert. Know interesting facts and trivia about the elections and see our informative graphics. Elections = News18)
Read full article
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
 
 
Most Active
Company Price Change %Gain
GRUH Finance 307.10 -6.85
Reliance 1,325.55 -0.63
Zee Entertain 374.80 3.98
SBI 347.25 1.48
Larsen 1,521.15 3.05
Company Price Change %Gain
GRUH Finance 306.75 -6.42
Reliance 1,325.30 -0.79
SpiceJet 136.10 5.42
Yes Bank 140.95 0.82
Zee Entertain 374.55 3.77
Top Gainers
Company Price Change %Gain
Zee Entertain 374.60 3.93
Larsen 1,521.15 3.05
Hero Motocorp 2,763.90 0.74
Bharti Airtel 344.25 1.61
M&M 649.15 1.51
Company Price Change %Gain
Larsen 1,520.00 3.00
Hero Motocorp 2,800.00 2.20
Bharti Airtel 344.20 1.71
M&M 649.10 1.50
ICICI Bank 416.00 1.32
Top Losers
Company Price Change %Gain
ONGC 170.25 -2.24
HUL 1,733.60 -1.15
Tech Mahindra 735.75 -1.02
HCL Tech 1,056.00 -0.98
Titan Company 1,210.00 -0.84
Company Price Change %Gain
ONGC 170.45 -2.07
HUL 1,734.00 -0.97
HCL Tech 1,056.00 -0.99
Reliance 1,325.30 -0.79
HDFC 2,098.00 -0.83

Live TV

Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results