Gst - property , ear estate

This query is : Resolved

Agarwal (Querist)
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21 May 2018 *type above - meant real estate:)

Hi, I was planning to guy 1st home (apartment) from a builder / construction company. During ST regime the tax applicable on the price was quoted at 4.5% and now on the same amout it is being used and 12% GST getting added to that - which has substantially increased the price - not to mention the increment in the per sqt rates by the builder.
Builer refuses to give any ITC on GST saying there is confusion and noone is clear - hence this is the amount that is being charged to all. (pl note: The said apartment is under construction). Question is that if this is a fair assumption today in the market that there is no ITC that will be passed on to the buyer and a buyer has to pay complete 12% GST on purchase of a flat. The incremental cost different between 4.5% and 12% is becoming huge - hence nowhere resulting in the benefit to ens consumer (buyer). Please guide.

CA Kartik Pandya

CA Kartik Pandya (Expert)
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23 May 2018 Being an immovable property one can not avail any ITC but you can manage the same . . .for that please note my mail id: cakartikpandya@gmail.com