I have booked a flat on 31.03.2019. Carpet area 450 sq ft. Cost rs 20 lacs. Promoter has charged GST@12% for for construction part. @18% on other services. In foot note of cost sheet provided with application from it was written that cost of all item is inclusive of GST rebate. But like this nothing is indicated in Agreement paper. Now my question is that. 1.Whether am I eligible for Benefit of ITC .whether can asked the promoter for benefit of ITC. 2.what GST rate @ 12% or 8 % applicable for this flat?
1. GST paid by you to the promoter is an expense for you since you are unregistered under GST and not doing any business. Please check whether your house is falling under the category of affordable housing scheme of PMAY. If yes then GST rate is 8% instead of 12% otherwise it is 12%.
2. GST on construction of flat before 01.04.2019 is either 8% or 12%. What are other services on which he is asking GST@18%?
Please take phone consultation for detailed discussion.
1. How I will be confirmed that it is come under PMAY affordable Housing Scheme. 2. I want to know whether promoter is bound to pass on ITC benefit on my Account as per Sec 171 of GST ACT(Anti profiteering) despite his note that rate are inclusive GST rebate .
In case of residential unit or any construction no itc is available as per section 17(5).
It depends on whether the scheme of property is under PMAY or not.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
You need to ask from the builder regarding same in writing.
If you are not satisfied and think otherwise file complaint against same with GST department.
Hello,
1. No, the ITC benefits won't be available to you.
2. The GST rate was 12% on the construction of flats before 01.04.2019. However, a concessional rate of 8% is applicable on affordable housing under PMAY.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
You should talk to the builder whether the building is eligible under the affordable housing scheme.
Dear Sir,
Hope you are doing well !!
1. No ITC available for the same.
2. It depends on what is the scheme.
You need to check the same with your builder.
Hi
1. You won't be getting any ITC benefit directly. Anti profiteering rules are laid down so that the builder may reduce the overall rates charged from the buyers and pass on the ITC benefit indirectly.
2. 12% rate would be applicable unless you have sufficient documentation and compliance done for eligibility under affordable housing to qualify for 8% rate.
- For transfer of benefit of ITC, you should have the accurate calculations along with the evidence i.e. pre and post GST era to appeal before the Anti-profiteering committee