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Applicability of gst rate

Harshil (S.C.Harne & Co.) (40 Points)

15 May 2018

I am having query relating to applicability of GST on Purchase of Home under PMAY (Subsidy of Rs. 2.67 Lacs)

What GST rate will be applicable 8% or 12%.

Benefit of the PMAY will be credited to loan account after 2-3 months from loan approval date. In that case builder is not having information that scheme is approved or not.? Customer is demanding that as per notification GST will be applicable 8% only.

Please suggest.

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (193771 Points)
Replied 15 May 2018

Take application from the customer for charging GST at 8% due to applicability of PMAY over sanctioned loan. & write to your Jurisditional Commercial tax officer for clarification about taxation rate. Wait till the confirmation.

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Harshil (S.C.Harne & Co.) (40 Points)
Replied 15 May 2018

customer has yet not filled application for loan.. He is saying that if he will get subsidy benefit under PMAY then he will get benefit of GST 4% as well.. as applicable GST is 8% in PMAY..

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (193771 Points)
Replied 15 May 2018

Till any such confirmation rate remains 12% only. On confirmation the difference can be adjusted. First your project should be approved for the scheme.