I have booked an under construction flat on 20 October 2017 and received CLSS subsidy under MIG I. As my builder has opt to pay GST at 12%, what would be the GST charged for me, 12 or 8. Also, does project need to passed under some affordable housing scheme, to be eligible for this benefits. Also, how can we force him to pass on GST input credit.
Dear Sir,
Hope you are doing well !!
The concessional rate of GST of 8% is applicable for houses constructed or acquired under the CLSS for Economically Weaker Sections (EWS) / Lower Income Group (LIG) / Middle Income Group-1 (MlG-1) / Middle Income Group-2 (MlG-2) under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana (PMAY Urban).
If your house falls under above categories then the rate is 8% otherwise 12%.
We may help you in entire procedure.
If the project is also registered under affordable housing scheme then 8% would apply otherwise 12%.
Since the house is sold for personal use he will pay such GST and show it as B2C sale so it wont be available for credit to you.
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Thank you.
Hello,
If the project is eligible and registered under the affordable housing scheme, then the GST would be charged at 8%, if not 12%.
There is no direct mechanism through which you can ask the builder or force hime to check whether he has passed on the credit benefits or not. However, you can complain regarding it to the GST authority or the Anti-profiteering department.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Hello Sir,
Please note that for houses under PMAY/ CLSS, builders also have to get suitable registrations with National Housing Bank (or approved banks by NHB) in order to be eligible to be able to sell houses under PMAY/ CLSS.
Hence, if builder has got such registration, you don't need to go to any bank but builder himself shall provide you such relief because builder has been registered under such scheme and will charge you the GST on revised rates of 8% rather than 12%.
In case builder is not eligible under PMAY/ CLSS as per the requirements, you will not get any benefit neither from bank nor any refund from GST department.
As such if builder is eligible and has got required registrations, he will definitely have to provide you benefits.
- 8%
- It should be registered with National housing bank.
- Compare cost sheet before GST and post GST regime.
