Hi,
As known till date, GST on contruction service in real estate for redential building, is effective 12% (18% on 2/3rd value) if I am not wrong.
As compared to previous ST and MVAT, that was 5.5%, 12% is much higher rate. It is more than double amount needa to be paid as previous tax. Is it supposed to be worked like this? As it seems to costly now to buy under construction house.
Thanks,
Abhijeet
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GST for real estate sector
Replies (7)
As such it is different way of calculation........ earlier VAT & ST were charged over under construction properties, plus excise & VAT was charged over raw material like cement, steel etc.... this was not known to customers, but added to the cost of flats by builders.....
Under GST these all taxes are replaced by GST with ITC (input tax credit at each stage).... which means the overall effect would be positive to end consumers.
Only thing is the benefits should come to end consumer by reduction in price of the flat, but that may take some more time.......... may be worked out in new projects....
Yes. I agrred to My dear Dhirajlal Sir...
It's take some more time as GST benefits to End users. Also We can wait.
Bcoz, Really GST is helpful...
Ok, fair enough to understand. Thank you very much.
Ok, fair enough to understand. Thank you very much.
My Pleasure.....
I agree. However, I have booked a flat in 2013 and final one installement is pending,now he is charging 12% on balance amount. How it can be justified?. Kindly let me know the remady on tyhis issue... Thankss....
So finally construction of the building is completed and possession is done, and GST benefits are calculated as zero, finally ended up paying 130000 extra as per GST rates. When discussed with builder, all calculations are properly done......
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