Comments
The Finance Ministry on Thursday asserted that construction of flats, complex, buildings will attract lower tax incidence under the proposed GST regime as compared to a plethora of central and state indirect taxes suffered under the existing regime.
The builders are expected to pass on the benefits of lower tax burden under the GST regime to the buyers of property by way of reduced prices/instalments, an official release said.
The Finance Ministry has now advised all builders/construction companies that in the flats under construction, they should not ask customers to pay higher tax rate on instalments to be received after imposition of GST .
“Despite this clarity on law position, if any builder resorts to such practice, the same can be deemed to be profiteering under Section 171 of GST law”, the release added.
The Ministry statement came in the wake of complaints received by CBEC and States that in view of the works contract service tax rate under GST at 12 per cent in respect of under construction flats, complex etc, the people who have booked flats and made part payment are being asked to make entire payment before July 1, 2017 or to face higher tax incidence for payment made after July 1. This is against the GST law, the release added.
Srivats.kr@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.