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real estate sector

CHAITRI SUDHAKARBHAI KHAROD (ARTICLE) (752 Points)

15 March 2019

if real estate sector has been kept out of ambit of GST then how can builder get benefit of tax credit?

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pritesh (CA Final student) (7101 Points)
Replied 15 March 2019

Gst to be charged on under construction property......now gst has been reduced on real estate sector..they will not get iTC

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CHAITRI SUDHAKARBHAI KHAROD (ARTICLE) (752 Points)
Replied 16 March 2019

ohk....means builder can't recover tax from customers nd has to pay output tax.....right??

pritesh (CA Final student) (7101 Points)
Replied 16 March 2019

This is not a composition scheme...it a normal scheme only where dealer cam recover tax and pay to govt but he cannot utilise ITC... Same like restaurant business

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montee Idaiyar (other) (341 Points)
Replied 16 March 2019

No. its not out of ambit of GST. Under construction properties are under supply, and GST will be charged at 5% (or 1%), but builder will not be able to claim input ITC, so they will increase the base rate!!

3 Like