Sale of flats after issue of completion certificate not to attract GST: Finance ministry
New Delhi, Dec 8 : The finance ministry Saturday said GST will not be levied on buyers of real estate properties for which completion certificate is issued at the time of sale.
However, Goods and Services Tax (GST) is applicable on sale of under-construction property or ready to move in flats where completion certificate is not issued at the time of sale, it said.
The ministry also asked the builders to reduce the prices of properties by passing on the benefit of lower GST rate.
"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 said in a statement.
It further said affordable housing projects like Jawaharlal Nehru National Urban Renewal Mission, Rajiv Awas Yojana, Pradhan Mantri Awas Yojana or any other housing scheme of state governments attracts 8 per cent GST, which can be adjusted by the builders against its accumulated input tax credit (ITC).
"For such (affordable housing) projects, after offsetting ITC, 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 books of account to pay the output GST, the ministry said.
It said cost of housing projects or complexes or flats, other than those in affordable segment, 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/ installments, where effective tax rate has been down, it said.
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Hoax bomb threat emails spark security alert at Karnataka government offices; no explosives found
Karwar/Tumakuru: Government offices in three Karnataka towns were placed on high alert on Tuesday after bomb threat emails were received by the tahsildar offices in Karwar and Bhatkal, and the deputy commissioner’s office in Tumakuru.
According to a report published by Deccan Herald, police officials said all three emails originated from a single email ID and contained claims of “revenge from Tamilians and Pakistanis.” Following the threats, security agencies immediately swung into action and the premises were evacuated and thoroughly searched.
Teams from the local police, bomb disposal squad and dog squad were deployed at all locations. Authorities have confirmed that no suspicious objects or explosives were found. They called the threats a hoax, after extensive checks.
Uttara Kannada Superintendent of Police Deepan M N said precautionary measures were taken as per protocol to ensure public safety. “A detailed search was conducted at all the mentioned offices, but nothing incriminating was found,” he said.
Police have begun efforts to trace the source of the emails and identify the sender while security around key government buildings in the affected districts was heightened as a precaution, officials added.
