Home buyers will now have to pay 12% GST on balance amount due to the builder if the housing project has been granted completion certificate before April 1, 2019. This GST will have to be paid by both registered and unregistered landowners.
GST News Highlights:
✔ From April 2019, builders of all under-construction houses have 2 options —
A. Pay 12% GST with ITC.
B. Pay 5% GST for residential units or 1% for affordable housing without ITC. ✔ Only the builder can decide to opt for the new GST rates or stick to old rates for ongoing projects. Landowners can’t!
✔ Builders will not be able to adjust the accumulated credits in ongoing projects in case they opt for lower new GST rate of 5% for normal and 1% for affordable housing.
✔ If the house owner has got the occupancy certificate (OC) for the house before April 1, 2019, the builder has to pay 12% GST with ITC. ✔ On completed residential projects, if OC is given after April 1, the builder has to pay 5% GST without the input tax credit.
✔ In case of real estate projects where occupation certificate has been issued before April 1, 2019, but the balance demands are pending, rates existed before 1st April 2019 are applicable.
✔ Measures are taken by the Govt to see that no one can take benefit of lower taxes rates by faking invoices.