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12%Tax burden @ Ready underConstn flats,No credit on taxes paid before July 1 to builders

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****GST की वजह से महंगे हो जाएंगे तैयार होने की कगार पर खड़े फ्लैट्स***

This petition is from existing buyers who have to get possession in next 3-6 months,our builders project is at finishing stage and almost ready for possession.

  • Builders claim that the 7.5% increase in tax post GST is because they will not be able to claim any credit for taxes paid on inputs bought before July 1.
  • After July 1, any invoice issued by the builder will attract 12% GST.
  • On top of it,we buyers will pay 6-8% tax as stamp duty at registry time.
  • Kindly protect such buyers by providing Land Cost Abatement or do clear how builders will get input tax credits on taxes paid on inputs before July 1 and what they will pass to buyers on nearing completion under construction flats.

Such buyers are in thousands who will pay rest 10-70% payment on possession in July-December,which will attract 12% flat tax for sure instead of current 4.5% due to Land Cost Abatement is also removed in GST now.

So in realty,for us,no single tax system even after #GST,but increased tax burden of 12-4.5=7.5%. (on 20 lakh payment it comes 1.5 lakh more tax)

From where common middle man buyer will adjust this increased financial burden. 

Many leading newspaper like IndiaTimes,Hindustan Times etc has discussed with builders and analysed the actual #Gray Area of #GST for nearing completion under construction flats.

http://timesofindia.indiatimes.com/business/india-business/gst-may-raise-price-of-flats-nearing-completion/articleshow/59185844.cms

http://navbharattimes.indiatimes.com/business/property/property-news/gst-may-raise-price-of-flats-nearing-completion/articleshow/59187772.cms

  1. If you are paying for your house in installments to the builder you may end up paying 12% GST on payments due from July 1 onward, instead of 4.5% service tax that you paid on installments till June 30.
  1. Similarly, if you plan to buy a house after July 1 in a project that is complete or nearing completion, you will have to pay tax at the rate of 12% on the entire amount.
  2. Builders claim that the 7.5% increase (12% - 4.5%) in tax post GST is because they will not be able to claim any credit for taxes paid on inputs bought before July 1.

Regards,

Noida/Greater Noida Home Buyers

 



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