Com­ple­tion cer­tifi­cate must to buy flat with­out GST: Govt

Khaleej Times - - INDIA -

new delhi — The gov­ern­ment on Satur­day said that buy­ers of real es­tate prop­er­ties will not have to pay Goods and Ser­vices Tax (GST) if they pur­chase the fully con­structed prop­erty af­ter the issue of com­ple­tion cer­tifi­cate.

“It is brought to the no­tice of buy­ers of con­structed prop­erty that there is no GST on sale of com­plex/ build­ing and ready-to-move-in flats where sale takes place af­ter issue of com­ple­tion cer­tifi­cate by the com­pe­tent author­ity,” the Min­istry of Fi­nance said in a state­ment.

The GST is ap­pli­ca­ble on sale of un­der con­struc­tion prop­erty or ready-to-move-in flats where com­ple­tion cer­tifi­cate has not been is­sued at the time of sale, it said.

The min­istry fur­ther said that hous­ing projects in the af­ford­able

seg­ment such as Jawa­har­lal Nehru Na­tional Urban Re­newal Mis­sion, Ra­jiv Awas Yo­jana, Prad­han Mantri Awas Yo­jana or any other hous­ing scheme of state gov­ern­ments will at­tract GST of eight per cent.

“For such projects, af­ter off­set­ting in­put tax credit, the builder or

de­vel­oper in most cases will not be re­quired to pay GST in cash as the builder would have enough ITC in his ac­count books to pay the out­put GST,” the state­ment said.

For projects other than af­ford­able seg­ment, the gov­ern­ment said it is ex­pected that the cost of the com­plex/build­ings/flats

would not have gone up due to im­ple­men­ta­tion of GST. “Builders are also re­quired to pass on the ben­e­fits of lower tax bur­den to the buy­ers of prop­erty by way of re­duced prices/in­stal­ments, where ef­fec­tive tax rate has been down,” it said. —

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