This is not a matter of Taxation, but the Bank policy. Bank can give loan only as per the policy. You will have to Pay 4% extra as down payment. Or you can contact builder and check why he is not eligible for 8% Tax rate.
i have booked flat in under construction building on 20th jan 2018 & as per Axis bank represntive they taken 12% gst calculation for home loan eligibilty. I come under MIG-1 group. Form submitted by Axis. i have done sale aggrement with builder on 20th Feb 2018. Now once aggrement done Axis bank saying that they will give home loan with calculation of 8% GST as per Goverment notofication on dtd. 25th Jan 2018. But builder is saying that his project in not register under PMAY/CLSS so GST will charge 12%. Now same thing i have spoken to bank but bank says those bying home 1st time (buyer) he will get this benefit & we cant give 12% GST. Now my home loan reduced due to such condition. Please guide us what to do?
This is not a matter of Taxation, but the Bank policy. Bank can give loan only as per the policy. You will have to Pay 4% extra as down payment. Or you can contact builder and check why he is not eligible for 8% Tax rate.
Hi,
The builder is correct in claiming that if the project is not registered/ compliant with the PMAY guidelines, he cannot get benefit of 8% GST as per the recent notification. As such, builder will be liable to charge you GST@12% only.
However, Axis Bank should take this into consideration that PMAY and CLSS are two different categories. Under CLSS, you get interest subsidy which has nothing to do with GST. Hence, the total loan should be calculated at the appropriate GST rate applicable on your property.
As such, Axis Bank should technically calculate your amount of home loan based on the total value (inclusive of GST) charged by the builder.
You can explain them that since builder is not registered under PMAY, he cannot charge 8% GST. You can also provide some kind of certificate/ letter from builder in this respect to Axis Bank.
That should solve your issue.
Regards,