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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Mamata alleges BJP disrupted her Bhabanipur rally, Suvendu claims 'she's nervous'
Kolkata (PTI): Chief Minister Mamata Banerjee cut short her speech at a rally in her Bhabanipur constituency, alleging that the BJP was deliberately playing loud music from a nearby public meeting.
A peeved Banerjee said despite having the required permission of the Election Commission, her rally in Chakraberia was disrupted by the BJP, "who want to capture Bengal by intimidation and threat".
"It is not possible for me to go ahead with this meeting. If they can do such a thing in my constituency, imagine how undemocratic the BJP is. If they behave like this, I have to take legal action," she said.
"This is an insult, humiliation. BJP is stepping on our toes to instigate trouble. Not possible to address the gathering in this situation. I am leaving the stage. Please vote for me in your protest," she added.
Banerjee was then seen calling someone over and venting her grievances.
Before leaving the stage, she said, "I will hold a rally tomorrow at the same spot."
TMC supporters then rushed towards the BJP rally, which was later addressed by Leader of the Opposition Suvendu Adhikari, but security personnel intervened and prevented the situation from escalating.
TMC workers later staged a demonstration outside the local police station and filed a complaint, alleging that the BJP violated the model code of conduct.
A senior TMC leader said another complaint will also be lodged with the Election Commission.
Asked about Banerjee's allegations, Adhikari told reporters after the rally he held nearby, "Her reaction shows she is nervous about the imminent loss."
"There was no violence, no obstruction in her meeting and her behaviour shows her nervousness. On May 4, people of Bhabanipur will celebrate the victory of the BJP," he claimed, alleging that the TMC also tried to disrupt his meeting by playing loud music.
South Kolkata's Bhabanipur, one of the battleground seats in the West Bengal elections, will vote in the second phase on April 29.
