Gst on under construction flat - 12% instead of 4.5%?

Others 228 views 1 replies

I recently booked an under-construction flat assuming a service tax of 4.5% over the agreed price.

I am planning to make the payment after july'17.

Considering that the GST is scheduled to be aplied from 1st July'17 and the GST rate decided on real estate is 12%, would I be liable to pay 12% over the price in place of 4.5% (A huge increase of 7.5%)? Or would the developer be able to use transitional provisions and reduce the effective GST rate aplicable?

Also, what would be the rate applicable if I were to sign the flat documents and make partial payment in June and remaining payment after July?

 

Would really appreciate advice on this matter. Thanks in advance.

Replies (1)

"Or would the developer be able to use transitional provisions and reduce the effective GST rate aplicable?"

That is the only hope, to give compensation in price, because of availability of ITC over 12% output GST


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