Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

GST on Real Estate Developers

vasim imam (15) (25 Points)

19 June 2017

Dear Sir/Madam

can you please explain GST on Real Estate Developers?
what is the rate of GST on it?

Reply
Follow
Share

5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160943 Points)
Replied 19 June 2017

12%............with full ITC....

vasim imam (15) (25 Points)
Replied 19 June 2017

Thank You So Much Sir....

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160943 Points)
Replied 19 June 2017

Most welcome Dear........

Nishith (Employeed) (33 Points)
Replied 19 June 2017

I have booked a flat and the property is under construction (80% completion stage). Under the current tax regime, the sale falls under Work Contract Tax and service tax at composite rate of 4.5% is levied.
With the introduction of GST, the service tax will be at 12% instead of 4.5%... This leads to a increase in landed cost to me..
Question: I understand that under the GST transitional provision, the builder will be able to get the benefits of input tax credit (of taxes paid before 1st July) for the property sold after 1st July.. However, the anti profiteering rules are still not clear. Request a clarification if you see any clarification on the anti profiting rules for such cases..
Thanks in anticipation of open discussion

Nishant Gupta (8 Points)
Replied 13 July 2017

Excise and WCT already paid by builder will not be converted to ITC. Hence at 80% completion, it is not reasonable to expect the builder to reduce rates to absorb higher Gst rates. Only valid for new launched projects.