Builders must pass on the GST benefit to homebuyers: Experts – GST Station

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The government’s note on Saturday that asked builders to reduce the prices of properties and pass on the benefit of the lower GST rate appears to be an outcome of anti-profiteering complaints.

With the upcoming Union Budget 2017, the professionals or experts are anticipating a dawn of regulations clarity and an onset of a new environment with RERA to boost the real estate sector of India. Recently, the government announced the rebate of interests by 3 percent and 4 percent on loans up to Rs. 12 lakh and Rs. 9 lakh respectively.

GST benefits for the consumers. Under the earlier tax system, homebuyers had to pay VAT and property taxes separately. Also, the charges varied across States and hence the property prices fluctuated significantly. Developers also paid additional taxes such as sales tax, customs duty and OCTROI for which the credit was unavailable.

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Builders Must Pass On The Benefits of Lower GST To You June 3, 2019 In a ruling that will have far consequences for real estate developers, the national anti-profiteering agency (naa) has held that excuses like some uncertain challenges

Based on the complaint, the HAL police registered an FIR on Friday, charging unnamed builders and contractors under Section. before taking action in the matter. After consulting experts, a detailed.

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While GST may not burden home-buyers if a developer passes on its benefits, experts say implications depend on project cost and its stage of completion Along with a number of policy reforms, the real estate sector is believed to have an impact due to the Goods and Services Tax (GST).

Therefore, many Builders were forced to work out their potential tax benefits occurring due to introduction of GST regime and pass on the same to the buyers c. Anticipated ITC now may get reduced as the same is not allowed in the new tax scheme and therefore, the benefits to be passed on to the customer will get reduced to the extent of GST on.

To ensure that developers pass on the benefit to the final customer, the government has included an anti-profiteering clause in GST law. Under this law, it is mandatory to pass on the benefit of tax reduction due to input tax credit to the final customer.

Homebuyers generally consider the festive season as an auspicious time to invest in property. During the same time, many builders put their homes in the. partaking in the opportunistic upside. GST,

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