The GST Council Thursday extended by 10 days till May 20 the due date for real estate agents to decide on old GST rates with information charge credit for continuous undertakings or move to new lower charge rates.
The GST Council, headed by Finance Minister Arun Jaitley and containing state partners, had in March enabled land players to move to 5 percent GST rate for private units and 1 percent for moderate lodging without the advantage of info charge credit (ITC) from April 1, 2019.
For the progressing ventures, developers have been given the alternative to either proceed in 12 percent Goods and Services Tax (GST) chunk with ITC (8 percent for moderate lodging), or decide on 5 percent GST rate (1 percent for reasonable lodging) without ITC and impart to their individual jurisdictional officers the equivalent by May 10.
“The date for practicing the choice for private land undertaking to either remain at old GST rate (8 percent or 12 percent with ITC) or to profit new GST rate (1 percent or 5 percent without ITC) is being reached out to May 20, 2019 from May 10, 2019,” the GST Council said in a tweet.
The Central Board of Indirect Taxes and Customs (CBIC) has given the land organizations a one-time choice to pick both of the assessment rates and once a realty engineer picks a specific expense rate for progressing ventures he would not have the option to alter it.
On the off chance that, real estate brokers don’t practice the choice by May 20, they will be secured under the lower charge rate of 5 percent and 1 percent with impact from April 1, 2019, and won’t be qualified for benefit charge credit on sources of info.
AMRG and Associates Partner Rajat Mohan said developers are still under the way toward ascertaining the money saving advantage investigation in connection to assess change situation.
“Developers were confronting difficulties in concluding the move over plan to the new assessment routine and in the light of new round on this issue, government in compliance with common decency has expanded the date for selecting,” he included.
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