Builders must pass on the GST benefit to homebuyers: Experts – GST Station

home buyers had sent their wish list for Budget 2018 to the finance minister. Among other things, they had demanded that the government bring the entire real estate sector under the ambit of GST and.

The ITC benefits now available to the builders under GST may be passed on to the flat/property buyers in many ways. Some of them are: reducing the prices of the flats/ properties. by giving discounts to the buyers. by crediting/ paying the ITC available, claimed and deducted from output liability to the account of the flat/property buyer.

May Weakness in US Housing Construction Hides Improving Conditions Construction of single-family housing was up 0,9% to an annual rate of 685,000, while the rate for units in buildings with 5 units or more was 476,000 — up 116,000 from May. Building permits

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GST benefits for the consumers. Under the earlier tax system, homebuyers had to pay VAT and property taxes separately. Also, the charges varied across States, and hence, the property prices fluctuated significantly. Developers also paid additional taxes such as sales tax, customs duty and OCTROI for which the credit was unavailable.

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Now, with the introduction of the Goods and Services Tax (GST), the total incidence of tax will increase from 5.5 per cent to 12 per cent. However, developers will be able to avail of input credit, on all the goods and services purchased and spent in the construction of the property.

Real estate experts. estate dealers to pass on GST rate cut benefits to homebuyers but to no avail. In order to ensure that the benefits reach the ultimate buyers, the Centre in December 2018.

GST is a comprehensive indirect tax system charged on manufacture, sale and consumption of goods and services at the national level. It has replaced multiple cascading taxes levied by the central and state governments. The biggest tax reform that the country has ever witnessed,

Therefore, many Builders were forced to work out their potential tax benefits occurring due to introduction of GST regime and pass on the same to the buyers c. Anticipated ITC now may get reduced as the same is not allowed in the new tax scheme and therefore, the benefits to be passed on to the customer will get reduced to the extent of GST on.