GST@12% & 18% on FLATS: BRUTAL BLOW !
Levying GST@12% on the under-construction flats in place of existing 4.5% Service Tax & 18% on related items is just a deadly & brutal blow to the flat-buyers who booked their flats much before 1July2017 but the builders didn't handover the same in time for obvious reasons !
Ironically it is ZERO% if it is a ready to move if delivered even a day after GST-implementation !
Regarding passing on 'input cost credit' or anything such no builder is ready to do this on the ground that 90% work was already done with erection of entire flat except the finishing work saying thus the materials bought before the GST-date as per the old price ?!
Just imagine if you now buy a flat of 50Lakh the GST on this will be 6Lakh & this is apart from the Stamp duty & registration fees which is around 4Lakh plus in this example in addition to the minimum compulsory expenditure of kitchen,door interiors!!
This is just like a Fund-bomb or GST-bomb on the ill-fated buyers who took loans and were anyhow trying to manage to maintain both the ends of their over-over-stretched budget !!
ADVICE: i)As was done in case of GAAR Govt should hold it for a couple of years with the existing Service Tax of 4.5% or even lower OR it should come under 5%GST category !!
ii) Govt should come with an unequivocal & clear-most notification that GST is not 12% on flats booked before 1st July2017 and/or booked after so that builders cannot misinterpret the notification and charge more.
Let us allow crores of poor Indians trapped in this case now to enjoy the real 'ACHCHHE DIN' !!!
Regards
O.P.Singh more
Levying GST@12% on the under-construction flats in place of existing 4.5% Service Tax & 18% on related items is just a deadly & brutal blow to the flat-buyers who booked their flats much before 1July2017 but the builders didn't handover the same in time for obvious reasons !
Ironically it is ZERO% if it is a ready to move if delivered even a day after GST-implementation !
Regarding passing on 'input cost credit' or anything such no builder is ready to do this on the ground that 90% work was already done with erection of entire flat except the finishing work saying thus the materials bought before the GST-date as per the old price ?!
Just imagine if you now buy a flat of 50Lakh the GST on this will be 6Lakh & this is apart from the Stamp duty & registration fees which is around 4Lakh plus in this example in addition to the minimum compulsory expenditure of kitchen,door interiors!!
This is just like a Fund-bomb or GST-bomb on the ill-fated buyers who took loans and were anyhow trying to manage to maintain both the ends of their over-over-stretched budget !!
ADVICE: i)As was done in case of GAAR Govt should hold it for a couple of years with the existing Service Tax of 4.5% or even lower OR it should come under 5%GST category !!
ii) Govt should come with an unequivocal & clear-most notification that GST is not 12% on flats booked before 1st July2017 and/or booked after so that builders cannot misinterpret the notification and charge more.
Let us allow crores of poor Indians trapped in this case now to enjoy the real 'ACHCHHE DIN' !!!
Regards
O.P.Singh more
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Similar to retailers who have been allowed to clear the old stock with old MRP till 31/12/17, for property flats GST should be applicable for new constructions/ bookings made after 01/07/17 and the earlier booked flats should be completed / given possession till 31/12/17 without additional GST burdens. However in either cases for builders having purchased materials after 01/07/17 with GST should pass on input tax credit till the construction is completed. more
Oct 01
Solid argument Sir !
FWant to add : For a first time buyer GST should be as usual 4.5% or even less because for them Home is not a luxury item or any sort of investment to be encashed in the next five years or so rather Home is a basic need for them !!
Pl give ur phone no.
Mine is 9830070098 more
FWant to add : For a first time buyer GST should be as usual 4.5% or even less because for them Home is not a luxury item or any sort of investment to be encashed in the next five years or so rather Home is a basic need for them !!
Pl give ur phone no.
Mine is 9830070098 more
Oct 01
Dear OM Prakashji It was 15% earlier -service Tax.Now 18%,that too on service bills raised after 30.06.2017 more
Sep 28
Yes Sir but after abatement the consumer/buyer had to pay only 4.5% service tax & not 15% !
Now Sir,please see the difference & heavy brutal burden yourself !! more
Now Sir,please see the difference & heavy brutal burden yourself !! more
Sep 29
Sorry for GST for people like me a pensioner. I have to pay Rs10% percup of coffee. I want to ask, what the Got has done where most of the hotels charge and give us the bill but at the time bill payment they take back the receipt. It means they store the bills, no income tax . Most hotel are cheating by not paying proper income tax. search and find more
Sep 27
Restaurant bill is useful to you only if you are also registered under GST use the bill to claim ITC (GST setoff). To enable this, the restaurant will have to include your GST No. on the tax invoice.
Still if you want the bill for some other purposes, you should demand for it and the restaurant is duty bound to give you the paid copy of the bill. more
Still if you want the bill for some other purposes, you should demand for it and the restaurant is duty bound to give you the paid copy of the bill. more
Sep 28
Other problem the buyer is facing is they are not getting offset from the builder for the GST paid by the builder more
Sep 27
Unfortunately, the ITC setoff which the builder gets is not transparent to the buyer. If possible please check rate charged to buyers who purchased from same builder for the same project before 1st July 2017. This may help to check if any benefit is being passed on. more
Sep 28
What happen in case if registration of flat has been done will before GST , Flats are B.U.cleared and possession is given but a part payment done in month of august , Is GST is applicable or not? more
Sep 27
Since flat was bought before the GST Act come into force no GST will be charged even a part pmt is made after 1st july more
Sep 27
