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What is input credit, how does it affect developers and gst percentage?

461 views 3 replies

Adeeb Cheulkar

18 Points Posted on 04 April 2019

Hi All,

I have a case with my friend where he is going to get benefits of reduced GST for under construction property. However, builder is giving a reason if he reduces the GST percentage from 8% to 5% then Government/Tax department will not give them input credit subsidiary.

1) What is input subsidiary here for developers?

2) Is that true statement about input subsidiary?

Appreciate the reply of CA gurus. Thanks

Replies (3)

Priya Kashyap

Student

7053 Points Posted on 04 April 2019

input credit is what you pay on inputs can be claimed on output tax and net shall be paid

prasad Nilugal

3924 Points Posted on 04 April 2019

Input credit means when you purchase taxable material you pay GST , same is available for set off against sales wherein you charge GST .

Adeeb Cheulkar

18 Points Posted on 19 April 2019

Originally posted by : Adeeb Cheulkar
	Hi All, I have a case with my friend where he is going to get benefits of reduced GST for under construction property. However, builder is giving a reason if he reduces the GST percentage from 8% to 5% then Government/Tax department will not give them input credit subsidiary. 1) What is input subsidiary here for developers? 2) Is that true statement about input subsidiary? Appreciate the reply of CA gurus. Thanks