Tax on payment made to builder for underconstruction flats, upto 30/06/2017 comes under VAT & Service Tax (4.5%+1%=5.5%), and Payment made on or after 01/07/2017 is liable for GST(12%).
Is there any official notification or circular or clarification issued by CBEC or MahaVAT Dept reagrding this where it clearly states the above.
Please share the same if available.
Thank You.
The statutory rate of GST is 18% only. However, due to the reduction in value by 1/3 out of total consideration for the flat, the rate is presumed to be reduced to 12%. Technically, it is wrong to say that the rate of tax is 12%.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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