GSTR 1- 8% not available

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Manivannan

Student

62 Points Joined October 2013

Helo sir/madam.

My client is the business of construction properties. During the FY 18-19, they have been paying GST @ 12% and 8% on non-affordable and affordable housing respectively. They have filed GSTR 3b for the FY but didn’t file gstr 1 since there is no rate of 8% in gstr 1. How to show this in GSTR 1?

Replies (2)

CA ABHAY GUPTA

Practice

3235 Points Joined August 2009

The concessional rate of GST of 12 percent (effective rate of 8 percent after deducting one-third of the amount charged for the house towards the cost of land) will henceforth (from January 25) be applicable for houses constructed or acquired under the CLSS for Economically Weaker Sections (EWS) / Lower Income Group (LIG) / Middle Income Group-1 (MlG-1) / Middle Income Group-2 (MlG-2) under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana (PMAY Urban).

so correct rate is 12% one need to reduce taxable value by 1/3.

for eg 120 rs taxable value tax @ 8% , tax = 9.6
if we go as per law 120 Rs less 1/3rd value of land = Rs 80, tax @ 12% on 80 = 9.60

hope it is clear..

Bhavika Kothari

1258 Points Joined May 2020

The taxable value can be reduced in this case. For example say the actual taxable value is Rs. 90. Tax rate to be charged is 8%. But allowed in GSTR-1 is 12%. The taxable value which you will enter in this case will be 60 (90*8/12)