Effect of GST on under construction flats. In trouble.

I have booked a flat (under construction) in Kolkata. Prior to GST, I’ve already paid 3 “demands” (part payments) from the builder. Now, each demand pre-GST came with a demand separate demand letter for Service Tax(ST) which amounted to roughly ₹14,500 ; the original demand being around ₹3,20,000.
Now, post-GST, the original demand (₹3,20,000) comes with a GST demand of more than ₹38,000.
I really fail to see how GST has been beneficial to me. Myself being a LIG/MIG person, it has become extremely difficult for me.
Help solicited. more

Helpful All GST Queries Answered Jan 13

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Promode Kapoor

True V have to fight for our Rights. n Thanks to this Chit chat, I hope all will wake up the RERA to demand information from the Builder the Benefits that he has received and given to each Buyer. V also need to fight with the Government on How to make Housing affordable by Reducing Taxes as this is essential commodities. Cost's for Properties have risen substantially. Adjust Tax for those who upgrade to a better house or down grade to reduce their cost of living. Jai Hind more

Jan 19

S K Virmani

If any one is feeling that the prices would come down due to GST, I personally feel it is a Myth and is like staying in fools paradise. Lets not fall victims to the statements of politicians from the ramps of Red Fort. The introduction of GST itself was to increase the tax collection and it is a well laid principle that the taxes increases the cost to an end consumer. Had the objective been to decrease the prices, the first commodity that should have been brought under the regime of GST would have been the petroleum products. more

Jan 15

H.P. Gurg

First of all when Govt is collecting Stamp Duty and registration fee which is already quiet high,why should Govt levy GST?As such in present scenerio owning a house is a costly affair then having rental accomodation. more

Jan 15

Promode Kapoor

GST for Flats are 12 % not 18 %. Those who have booked the Flat and starting payment of advance were booked at 4.5 % Service Tax while all the Taxes n Duties were to the Builders account. Increase in Taxes n Duties too were on the Builders account unless the agreement specifies this relationship of change in payment advice. We need to take it up with RERA, a central government organisation to take these builders to task. Those who started payment before GST have a right to fight for adequate price reduction for the Taxes n Duties which they are taking benefit of [7.5%]. Agree the Government takes Taxes for their benefits as has been proved in the past. V need to wake up and demand change from Now Onwards. Demand restriction of cost MLA's / MP's to begin with . . . more

Jan 15

S Srinivasan

Since the builder gets input credit,he is supposed to pass it on to the purchaser. In fact the instalment amount will be lowered. you may have to correspond with the builder and if need be fight for your rights more

Jan 15

Debabrata Biswas (Non expert)

Thank you for the concern Mr.Pal. But my builder is already providing me the ITC. See, if 18%GST was charged on 3,20,000 ,the amount would have been much more. It’s only after deducting the input tax credit that the GST comes to @12% which I’m supposed to pay now. Still, I seriously fail to see my benefit here. Isn’t there any provision for under construction flats booked before 1st July? I mean,it would have saved me a lot of money. more

Jan 14

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