NEW DELHI: The GST Council on Thursday prolonged via 10 days till May 20 the deadline for realtors to opt for previous GST rates with enter tax credit score for ongoing initiatives or shift to new lower tax rates.
The GST Council, headed via Finance Minister Arun Jaitley and comprising state counterparts, had in March allowed real estate players to shift to five according to cent GST price for residential gadgets and 1 according to cent for inexpensive housing with out the benefit of enter tax credit score (ITC) from April 1, 2019.
For the continued initiatives, builders were given the approach to both proceed in 12 according to cent Goods and Services Tax (GST) slab with ITC (8 according to cent for inexpensive housing), or opt for 5 according to cent GST price (1 according to cent for inexpensive housing) with out ITC and keep up a correspondence to their respective jurisdictional officials the same via May 10.
"The date for exercising the option for residential real estate project to either stay at old GST rate (8 per cent or 12 per cent with ITC) or to avail new GST rate (1 per cent or 5 per cent without ITC) is being extended to May 20, 2019 from May 10, 2019," the GST Council stated in a tweet.
The Central Board of Indirect Taxes and Customs (CBIC) has given the actual estate corporations a one-time choice to choose both of the tax rates and once a realty developer chooses a selected tax price for ongoing initiatives he would now not be able to adjust it.
In case, realtors do not workout the option via May 20, they're going to be covered under the lower tax price of five according to cent and 1 according to cent with effect from April 1, 2019, and will not be entitled to avail tax credit score on inputs.
AMRG & Associates Partner Rajat Mohan stated builders are nonetheless under the process of calculating the price benefit research in terms of tax trade situation.
"Builders were facing challenges in finalising the roll over scheme to the new tax regime and in the light of new circular on this matter, government in good faith has increased the date for opting," he added.
The GST Council, headed via Finance Minister Arun Jaitley and comprising state counterparts, had in March allowed real estate players to shift to five according to cent GST price for residential gadgets and 1 according to cent for inexpensive housing with out the benefit of enter tax credit score (ITC) from April 1, 2019.
For the continued initiatives, builders were given the approach to both proceed in 12 according to cent Goods and Services Tax (GST) slab with ITC (8 according to cent for inexpensive housing), or opt for 5 according to cent GST price (1 according to cent for inexpensive housing) with out ITC and keep up a correspondence to their respective jurisdictional officials the same via May 10.
"The date for exercising the option for residential real estate project to either stay at old GST rate (8 per cent or 12 per cent with ITC) or to avail new GST rate (1 per cent or 5 per cent without ITC) is being extended to May 20, 2019 from May 10, 2019," the GST Council stated in a tweet.
The Central Board of Indirect Taxes and Customs (CBIC) has given the actual estate corporations a one-time choice to choose both of the tax rates and once a realty developer chooses a selected tax price for ongoing initiatives he would now not be able to adjust it.
In case, realtors do not workout the option via May 20, they're going to be covered under the lower tax price of five according to cent and 1 according to cent with effect from April 1, 2019, and will not be entitled to avail tax credit score on inputs.
AMRG & Associates Partner Rajat Mohan stated builders are nonetheless under the process of calculating the price benefit research in terms of tax trade situation.
"Builders were facing challenges in finalising the roll over scheme to the new tax regime and in the light of new circular on this matter, government in good faith has increased the date for opting," he added.
Deadline for realty firms to opt for old GST rate
![Deadline for realty firms to opt for old GST rate]()
Reviewed by Kailash
on
May 10, 2019
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