On 33rd gst Council meeting
announced that rate of gst is reduced to 5% without taking input. In this scenario cost of the construction should increase. But all news paper reports are showing in real estate sector have big boom like that. But actually its negative impact on real estate sector. This is my view in new gst regime. Kindly advise anyone who involved more in the case and how overcome this situation
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Gst Rate change in 5% in Real Estate
Replies (9)
Earlier rate was 8% for affordable housing residential projects , now it is 1% without ITC
Earlier rate was 12% for houses other than affordable housing residential projects, now it is 5% without ITC
so it will be beneficial to customer, no loss or profit to builder, revenue of government will increase
Sir
Thank you sir for your reply but sir how to tell no loss in builder approximate 18% input is definitely added in our cost that's lead to tendancy to increase the price, Actually no benefits goes to customers also. This is my thinking sir any wrong kindly advise.
Thank you sir for your reply but sir how to tell no loss in builder approximate 18% input is definitely added in our cost that's lead to tendancy to increase the price, Actually no benefits goes to customers also. This is my thinking sir any wrong kindly advise.
Nothing any wrong in your thinking,
it will automatically have compensating effect to both builder and customer
after completion of the project builders were required to reverse the balance ITC in their ledger , and much conflict was there between department and assessee builder
Thanks sir, Hope more clarity will get on March 10th meeting. Wait and see.
Hi
We have registered an under construction property in Nov 18, for which OC came on 22.2.19 and demand letter (invoice) is made on the same date.
But our payment is pending to be done. We are waiting so that if we make final payment in April 19 we can get benefit of lower GST ie 5%
Reasons:-
Since at the time of sale is it was under construction and I am making payment on 1.4.2019.
As there is no clarity on this wanted opinion for that.
Thanks
You will get benefit of reduced rate on balance liability to be due
Thanks alot sir
IS ROW HOUSES CONSIDERED UNDER AFFORDABLE HOUSING SCHEME OF GST
Yes, if its plan approved by local authority. having area as specified in the notification and price below 45L/
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