Gst - property , ear estate
This query is : Resolved
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.
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
(Expert)
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
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