Press Release – CBIC Specified the Effective Tax Rate

CBIC specified the Effective tax rate on complex, building, flat etc. 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 is stated that Effective Tax Rate on affordable housing segment is 8% and Other segments is 12% after one-third abatement of value of land. Builder and developer in most cases would have enough ITC in his books to pay GST, hence mostly they would not be required to pay GST in cash. Builders have been asked to pass the benefits of lower tax burden to the buyers of the property by way of reduced prices and instalments.
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