• GST rate from 12% to 8% for PMAY and CLSS homes (March 2018)

already a Question thread exists on subject topic , I wish to ask some more questions , replies will be helpful and appreicated,

a) What is the notification and update status as on today in March 2018
b) any decisions / notifications released by government  that are favourable to home buyers with respect to GST waiver ?
c) Steps to be taken incase Builder is not agreeing to pass on the benefit
d) Any update on GST and stampduty merger ?
e) How to check if the Project qualifies under this PMAY category and how to certify that the applicant is eligible for GST waiver ?
f) carpet area for MIG-1 category for eligibility is 60 Sq mtr or 90 Sq meter ?


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thanks and regards
Girish
Asked 6 years ago in GST

Hi,

Your answers are as below:

a) GST Council at its meeting held on 18.01.2018 had reduced applicable GST Rates on MIG-2 Category houses under CLSS category as applicable to you. The same was notified and published in the official gazette of India on 25.01.2018 by Ministry of Finance vide G.S.R. 69(E). dated 25.01.2018.

It came into effect from that date itself i.e. 25.01.2018.

The said notification was to amend the principal notification No. 8/2017 - Integrated Tax(Rate), dated 28.06.2017, vide number G.S.R. 683 (E), dated 28.06.2017 and was last amended by notification No. 48/2017-Integrated Tax (Rate), dated 14.11.2017 vide number G.S.R. 1407(E), dated 14.11.2017.

The link of the official notification available as Gazette of India is as below:

http://egazette.nic.in/WriteReadData/2018/182325.pdf

b) The above explained notification deals with reduction in GST Rate from 12% to 8%

c) If the builder does not allow you to take benefit of the reduced GST Rates or does not pass on the benefit of the same to you, the builder is liable under anti-profiteering clauses of the GST Laws. Govt. has already set-up National Anti-Profiteering Authority for the same. However, you will first have to approach your local area GST commissioner for the same, who will guide you to the state screening committee under anti-profiteering laws.

After this, you will have to file application in APAF-1 to the designated state screening committee. The link for the said form is:

http://www.cbec.gov.in/resources//htdocs-cbec/gst/format_%20for_filing_anti-profiteering_application_new.pdf

By filling in the required details and filing the same with the designated official, you can start taking action against the errant builder.

If found guilty, the concerned authority may order for:

- Reduction in prices as per the GST benefits

- Impose penalty on the errant builder

- Also, may cancel the GST Registration of the builder

d) GST Council has in principally agreed that they are willing to consider merger of Stamp Duty with GST. However, a committee to study the impact of the same on state revenues shall be constituted and then any progress on this may happen.

e) Such projects are approved by National Housing Bank (NHB) to be eligible under PMAY. Applicant is required for eligibility under CLSS. Both can be confirmed by your lender when you approach for Home Loan.

f) As per my understanding, carpet area (Max) is EWS/ LIG (60 sq m), MIG-1 (120 sq m) and MIG-2 (150 sq m)

Regrads,

Sunny Thakral
CA, Delhi
224 Answers
8 Consultations

5.0 on 5.0

1) PMAY and CLSS are liable for GST @8%.

2) The govt. has only reduced the net effective rate from 12% to 8%.

3) Compliant with State and Centre Anti-profiteering committee.

4) Stamp duty has not been merged with the GST. It is an additional cost apart from GST.

5) On the website of National Housing Bank and HUDCO

6) 90 sq.mtr

Vivek Kumar Arora
CA, Delhi
4825 Answers
1031 Consultations

5.0 on 5.0

Hi,

Replies are as below:

b) It would be very difficult to explain you the notification like this. You can search for the words MIG-2 in the said notification. Trust, it says that GST is reduced.

c) In case you don't want dispute with the builder and he is not agreeing for reduced GST, no other way out. However, in later part of the query you have stated that builder has replied to you that his project is not approved for reduced GST rates as yet. In that case he cannot transfer to you any benefits thereon, because the project as such is not approved under PMAY.

d) This is Govt. procedure under the aegis of Hon'ble GST Council (which is a constitutional authority). Even Finance Minister cannot guarantee you anything on this.

e) If builder has said that his project is not approved for reduced GST benefits, he cannot pass on the same to you.

f) He is clearing saying, " Our project does not have approval to charge 8% under PMAY". No further discussions on this are required.

g) Same, if project is not approved, no benefit.

In the end, I would like to clarify here that if the builder himself is claiming and admitting the fact that his project is not approved under the PMAY for reduced GST Rates, there is no point in forcing him to pass on the undue benefits to you.

I hope there is some clarity for you now.

Regards,

Sunny Thakral
CA, Delhi
224 Answers
8 Consultations

5.0 on 5.0

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