I am planning to buy a flat which is under construction. The builder is insisting on GST at 12% and not willing to pass any input credits to customers. It’s a huge burden.what to do sir. Srinivas
Hi Srinivas,
You have to pay 12% GST on under construction property. As far as benefit of input credit is concerned, you can figure out whether he has passed on or not.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hi Srinivas
GST shall have to be paid.
It's at the builder's option whether to pass on the benefits or not. If he's not doing so, nothing can be done. You have to bear the costs.
You can request the builder to reduce the rate. That is only thing you can do as the builders are charging the same and on request reducing the price.
Hello,
How did you come to know that the builder is not passing on any input credit to the customer ??
In case you do know then all you buyers taken together can boycott the builder and avoid buying the property, this will automatically make him pass on the credit to you as the real estate market is doing pretty bad all over India. This is your time to be the king.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
