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Gst on constructing flats

CA Sathish Reddy (Articles) (352 Points)

21 July 2017

Sir

We entered into a contract with the builders to build a flat in the month of April

Construction is in progress tilll today

what is the treatment??

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4 Replies

CA Sathish Reddy (Articles) (352 Points)
Replied 21 July 2017

not understood

akshay (article) (105 Points)
Replied 21 July 2017

suppose u have paid part consideration for the under constructed flat before July den it will be outside d gst regime earlier law will apply. consideration payable after July will attract gst act n according rate will be 12%. Dis means cost of flat will rise as earlier it was around 6% including vat.

CA Sathish Reddy (Articles) (352 Points)
Replied 24 July 2017

Thanks for the reply

And one more doubt pl clarify

We have to pay GST to the builder

I heard that as per GST whatever tax amount received by builder ,he has to share some input to the service receiver

Let me know whether is it correct or not??

akshay (article) (105 Points)
Replied 24 July 2017

yes its anti profiteering section of gst. under gst its say that input tax credit which earlier was not allowed and allowable under gst, that credit should pass to customers as reduction in cost. The problem is that will credit will be pass on to end customers I doubt, as you know the back pictures of builders. How builders will quantify the amount to end customers, bcz they way end number of reason to state that Gst was not beneficial to them. More over they have solid reason for RERA act which require many compliance leading to rise in cost which is not pass on to customer. My conclusion is that ultimately to will be bearing this additional 6% taxes.