5
9/4/2018 With no GST breather, ready-to-move-in flats to cost more | India News – India TV https://www.indiatvnews.com/business/india-with-no-gst-breather-ready-to-move-in-flats-to-cost-more-389091 1/5 YOU ARE AT: With no GST breather, ready-to-move-in ats to cost more PTI, Mumbai [ Published on: July 02, 2017 12:25 IST ] With no GST breather, ready-to-move-in ats to cost more Under GST, the effective tax on under-construction projects has gone up to 12 per cent, which is an increase of 6.5 per cent. The consumers will have to shell out more for the ready to move-in ats under the GST system as developers with large unsold inventories are planning to pass on the higher tax burden to home-buyers. However, the new ats will cost less, giving some breather to the developers of upcoming projects. Under GST, the effective tax on under-construction projects has gone up to 12 per cent, which is an increase of 6.5 per cent. The actual GST rate is 18 per cent on realty, but allows one-third of the tax to be deducted from the land value, from the total cost charged by the developer. The GST gives an option of getting full input set-off credit, which is not applicable on ready-to-move-in ats and as a result, developers will have to bear the burden of higher tax or pass on to the end-consumers or increase the overall prices to match the new tax burden, say developers. "While developers might still get some benets for projects that are in nascent stages, they will have to bear the tax burden for the ready-to-move-in projects since they are kept US Visa $500,000 Required USCIS Requires $500,000. Thousands Of Successful Clients From All Over The World. Current Recent Upcoming United Arab Emirates VS Hong Kong Kinrara Academy Oval, Kuala Lumpur Final 5th Test LIVE TV Home Business News Representational pic - With no GST breather, ready-to-move-in ats to cost more LIVE SCORECARD TOP NEWS Major Gogoi will be punished as per his crime: Army Chief General Bipin Rawat Kerala oods: Government cancels all ocial celebrations for one year Chief Justice Dipak Misra recommends Justice Ranjan Gogoi as his successor Pentagon asks Pakistan to ‘indiscriminately’ target all terrorist groups US Visa $500,000 Required USCIS Requires $500,000. Thousands Of Successful Clients From All Over The World. US Visa $500,000 Required USCIS Requires $500,000. Thousands Of Successful Clients From All Over The World. US Visa $500,000 Required USCIS Requires $500,000. Thousands Of Successful Clients From All Over The World. US Visa $500,000 Required USCIS Requires $500,000. Thousands Of Successful Clients From All Over The World. 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Page 1: With no GST breather, ready-to-move-in ats to cost moreelplaw.in/wp-content/uploads/2018/09/With-no-GST... · 9/4/2018 With no GST breather, ready-to-move-in flats to cost more |

942018 With no GST breather ready-to-move-in flats to cost more | India News ndash India TV

httpswwwindiatvnewscombusinessindia-with-no-gst-breather-ready-to-move-in-flats-to-cost-more-389091 15

YOU ARE AT With no GST breather ready-to-move-in ats to cost more

PTI Mumbai [ Published on July 02 2017 1225 IST ]

With no GST breather ready-to-move-in ats to cost moreUnder GST the effective tax on under-construction projects has gone up to 12 per cent which is an increase of 65per cent

The consumers will have to shell out more for the ready tomove-in ats under the GST system as developers with largeunsold inventories are planning to pass on the higher taxburden to home-buyers However the new ats will cost lessgiving some breather to the developers of upcomingprojects

Under GST the effective tax on under-construction projectshas gone up to 12 per cent which is an increase of 65 percent The actual GST rate is 18 per cent on realty but allowsone-third of the tax to be deducted from the land value fromthe total cost charged by the developer

The GST gives an option of getting full input set-off creditwhich is not applicable on ready-to-move-in ats and as aresult developers will have to bear the burden of higher tax orpass on to the end-consumers or increase the overall pricesto match the new tax burden say developers

While developers might still get some benets for projectsthat are in nascent stages they will have to bear the taxburden for the ready-to-move-in projects since they are kept

US Visa $500000 Required

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Current Recent Upcoming

United ArabEmirates

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Representational pic - With no GST breather ready-to-move-inats to cost more

LIVE SCORECARD

TOP NEWSMajor Gogoi will bepunished as per his crimeArmy Chief General BipinRawat

Kerala oods Governmentcancels all ocialcelebrations for one year

Chief Justice Dipak Misrarecommends JusticeRanjan Gogoi as hissuccessor

Pentagon asks Pakistan tolsquoindiscriminatelyrsquo target allterrorist groups

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ces byt

Next Sto

Soon tra

He Regrew His HairBack In Just (7) DaysWith This Super EasyNatural Formula

VIDEOS INDIA BUSINESS ENTERTAINMENT PHOTOS SPORTS BUZZ WORLD LIFESTYLE TECHNOLOGY LIVE TV

942018 With no GST breather ready-to-move-in flats to cost more | India News ndash India TV

httpswwwindiatvnewscombusinessindia-with-no-gst-breather-ready-to-move-in-flats-to-cost-more-389091 25

out of the GST ambit House of Hiranandani Chairman andManaging Director Surendra Hiranandani said

Gera Developments Managing Director Rohit Gera said underthe GST regime tax on under construction projects would be12 per cent an increase of 65 per cent for buyers There isan option of getting full input set-off credit on all input side ifGST is paid by them but this is not applicable on ready-to-move-in properties As a result developers will either have tobear the burden of the tax since it cannot be passed on to theend consumers or the rates of apartments that are ready-to-occupy will increase to the extent of the taxes

Vinod S Menon CEO of Bengaluru-based mid-marketdeveloper Citrus Ventures says everybody talks about thepositives that GST brings in But the devil lies in the detailsand no one seems to have any clarity on that Menon saidthough one-third deduction makes the effective rate 12 percent with current effective VAT plus service tax rate beingnine per cent there is still a three per cent incrementalcharge

Since no retrospective claim of credits is possible this will bea bone of contention between customer and developer as towho will bear this he said adding that coupled with the newregulator Rera GST will increase paperwork and thus theoverall cost

However Knight Frank India Chairman Shishir Baijal said likethe note-ban GST would trigger some momentarydisturbances but augur well for the industry in the long term

The intention of GST is to bring in eciency in the entire taxsystem and its implementation will see some teethingissues But eventually it will pave the way for an extremelyecient tax system for the country he said

Echoing similar views SILA founder and MD Sahil Vora saidthere will be pain and forced consolidation in the sector but inthe long-run everybody will benet

But the affordable housing sector is happy as there is no taxon it Since almost 70 per cent of the market caters to themiddle to high income segment GST could shift focusparticularly of smaller developers towards high volume lowto medium income segment RICS Globals Sachin Sandhirsaid

Anarock Property Consultants Chairman Anuj Puri said theaffordable housing sector will not be impacted by GST as

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942018 With no GST breather ready-to-move-in flats to cost more | India News ndash India TV

httpswwwindiatvnewscombusinessindia-with-no-gst-breather-ready-to-move-in-flats-to-cost-more-389091 35

GOODS AND SERVICES TAX

there will be no tax under GST for affordable housingscheme

CBRE South Asias Ram Chandnani said GST will also attractinternational residential investment as it has been seenglobally that a unied tax structure has been one of the manycatalysts for increased investments Additionally sectorsancillary to real estate will see improved supply chaineciency with the removal of various federal tax barriers andcreation of a common market accelerating the delivery ofgoods

Atul Chordia of Panchshil Realty said they have onlycompleted or near-ready projects which will be paying 12 percent GST on the cost of construction The effective 12 percent tax is higher than the industry as we tend to use best-in-industry material much of which will fall under the 28 percent slab leading to higher overall cost

India Ratings maintains a negative outlook for the real estatesector for FY18 on expectation of a continued slump in saleof residential units This will lead to continued negative cashows since FY14 and a further increase in already-high debtlevels resulting in weakening of the sectors credit prole

Rohit Jain a partner at law rm Economic Laws Practice saidthere isnt enough clarity on transitional provisions under GSTwhether it pertains to credit of inventory credit on unsoldstock or the tax implications where part payments are madeunder the pre-GST and part under the new taxation system

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942018 With no GST breather ready-to-move-in flats to cost more | India News ndash India TV

httpswwwindiatvnewscombusinessindia-with-no-gst-breather-ready-to-move-in-flats-to-cost-more-389091 45

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942018 With no GST breather ready-to-move-in flats to cost more | India News ndash India TV

httpswwwindiatvnewscombusinessindia-with-no-gst-breather-ready-to-move-in-flats-to-cost-more-389091 55

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Page 2: With no GST breather, ready-to-move-in ats to cost moreelplaw.in/wp-content/uploads/2018/09/With-no-GST... · 9/4/2018 With no GST breather, ready-to-move-in flats to cost more |

942018 With no GST breather ready-to-move-in flats to cost more | India News ndash India TV

httpswwwindiatvnewscombusinessindia-with-no-gst-breather-ready-to-move-in-flats-to-cost-more-389091 25

out of the GST ambit House of Hiranandani Chairman andManaging Director Surendra Hiranandani said

Gera Developments Managing Director Rohit Gera said underthe GST regime tax on under construction projects would be12 per cent an increase of 65 per cent for buyers There isan option of getting full input set-off credit on all input side ifGST is paid by them but this is not applicable on ready-to-move-in properties As a result developers will either have tobear the burden of the tax since it cannot be passed on to theend consumers or the rates of apartments that are ready-to-occupy will increase to the extent of the taxes

Vinod S Menon CEO of Bengaluru-based mid-marketdeveloper Citrus Ventures says everybody talks about thepositives that GST brings in But the devil lies in the detailsand no one seems to have any clarity on that Menon saidthough one-third deduction makes the effective rate 12 percent with current effective VAT plus service tax rate beingnine per cent there is still a three per cent incrementalcharge

Since no retrospective claim of credits is possible this will bea bone of contention between customer and developer as towho will bear this he said adding that coupled with the newregulator Rera GST will increase paperwork and thus theoverall cost

However Knight Frank India Chairman Shishir Baijal said likethe note-ban GST would trigger some momentarydisturbances but augur well for the industry in the long term

The intention of GST is to bring in eciency in the entire taxsystem and its implementation will see some teethingissues But eventually it will pave the way for an extremelyecient tax system for the country he said

Echoing similar views SILA founder and MD Sahil Vora saidthere will be pain and forced consolidation in the sector but inthe long-run everybody will benet

But the affordable housing sector is happy as there is no taxon it Since almost 70 per cent of the market caters to themiddle to high income segment GST could shift focusparticularly of smaller developers towards high volume lowto medium income segment RICS Globals Sachin Sandhirsaid

Anarock Property Consultants Chairman Anuj Puri said theaffordable housing sector will not be impacted by GST as

by Taboola

You May Like Promoted Links

Lastmin-Flights

Shaadicom

creditmantricom

Congo Because you live in Haryana you canbook these cheap ights

Major Gogoi will be punished as per his crimeArmy Chief General Bipin Rawat

Shaadicom - Your Love Story is Waiting toHappen - Register Free

VIDEO News 100 | September 4 2018

Check Your Credit Score Online For Free

VIDEO BSP local leader from Meerut shot deadby unidentied miscreants at Delhis JamiaNagar

LATEST NEWSAaj ki Baat Sept 3 episodeWhy should common manin Kashmir face the brunt ofattacks from terrorists

Exclusive | Shastri Bangarshould be held accountablefor Indias poor show inEngland Ganguly to IndiaTV

S i i d l f l f

ces byt

942018 With no GST breather ready-to-move-in flats to cost more | India News ndash India TV

httpswwwindiatvnewscombusinessindia-with-no-gst-breather-ready-to-move-in-flats-to-cost-more-389091 35

GOODS AND SERVICES TAX

there will be no tax under GST for affordable housingscheme

CBRE South Asias Ram Chandnani said GST will also attractinternational residential investment as it has been seenglobally that a unied tax structure has been one of the manycatalysts for increased investments Additionally sectorsancillary to real estate will see improved supply chaineciency with the removal of various federal tax barriers andcreation of a common market accelerating the delivery ofgoods

Atul Chordia of Panchshil Realty said they have onlycompleted or near-ready projects which will be paying 12 percent GST on the cost of construction The effective 12 percent tax is higher than the industry as we tend to use best-in-industry material much of which will fall under the 28 percent slab leading to higher overall cost

India Ratings maintains a negative outlook for the real estatesector for FY18 on expectation of a continued slump in saleof residential units This will lead to continued negative cashows since FY14 and a further increase in already-high debtlevels resulting in weakening of the sectors credit prole

Rohit Jain a partner at law rm Economic Laws Practice saidthere isnt enough clarity on transitional provisions under GSTwhether it pertains to credit of inventory credit on unsoldstock or the tax implications where part payments are madeunder the pre-GST and part under the new taxation system

Sponsored Links

Sponsored Links

SavingsUnion

Top 10 Most Customer Friendly Banks

You May Like

Astro Conquest

LaseTripscom

You can play this Game in your browser for free

One of The Cheapest Ways to Get a Flight Ticket

Scientists develop fuel fromwater via semi-articialphotosynthesis

AndhaDhun New PosterWhen Radhika Apte fell inlove with blind AyushmannKhurrana

SOCIAL STREAM IndiaTV News

25 m

SCST Act MP on highSCST Act MP on highalert as upper caste groupsalert as upper caste groups

IndiaTV12

Social media cell phoneSocial media cell phoneusage for soldiers shouldusage for soldiers should

ces byt

942018 With no GST breather ready-to-move-in flats to cost more | India News ndash India TV

httpswwwindiatvnewscombusinessindia-with-no-gst-breather-ready-to-move-in-flats-to-cost-more-389091 45

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Jacqueline Fernandez to share screen space with KartikAaryan in Kirik Party

ces byt

942018 With no GST breather ready-to-move-in flats to cost more | India News ndash India TV

httpswwwindiatvnewscombusinessindia-with-no-gst-breather-ready-to-move-in-flats-to-cost-more-389091 55

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TALK OF THE TOWN 128293

Infrastructure gaps in judicial systemshould be addressed before it leaves scaron justice administration CJI Dipak Misra

7 comments

Rafale deal row Rahul Gandhi once againattacks Arun Jaitley

6 comments

NIOS DElEd 2018 Result First semesterresults announced here is how to check official website niosacin

3 comments

Phone banking by Congress hurteconomy every penny of loans will berecovered PM Modi after launchingIndia Post Payments Bank

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Drunk man urinates on womanpassengers seat on Air Indias New York-Delhi flight Jayant Sinha orders probe

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copy 2009-2018 Independent News Service All rights reserved

Site Map | Legal disclaimer | Privacy Policy | CSR Policy | Complaint Redressal | Rss

Contact Us About Us Careers Advertise Complaint Redressal In the Press Salaam India Awards Investors Column

21 Years Aap ki Adalat Hindi News English News

Mobile Zone Mail Alerts Facebook Twitter Fan Blogs on Wordpress Fan Blogs on Blogspot India Tv Contest Hints

Live TV Buzz Photos Videos Gold Contest Latest News in Hindi News India Sports News Business News India

Business News Stock Market Live Gold Price

Page 3: With no GST breather, ready-to-move-in ats to cost moreelplaw.in/wp-content/uploads/2018/09/With-no-GST... · 9/4/2018 With no GST breather, ready-to-move-in flats to cost more |

942018 With no GST breather ready-to-move-in flats to cost more | India News ndash India TV

httpswwwindiatvnewscombusinessindia-with-no-gst-breather-ready-to-move-in-flats-to-cost-more-389091 35

GOODS AND SERVICES TAX

there will be no tax under GST for affordable housingscheme

CBRE South Asias Ram Chandnani said GST will also attractinternational residential investment as it has been seenglobally that a unied tax structure has been one of the manycatalysts for increased investments Additionally sectorsancillary to real estate will see improved supply chaineciency with the removal of various federal tax barriers andcreation of a common market accelerating the delivery ofgoods

Atul Chordia of Panchshil Realty said they have onlycompleted or near-ready projects which will be paying 12 percent GST on the cost of construction The effective 12 percent tax is higher than the industry as we tend to use best-in-industry material much of which will fall under the 28 percent slab leading to higher overall cost

India Ratings maintains a negative outlook for the real estatesector for FY18 on expectation of a continued slump in saleof residential units This will lead to continued negative cashows since FY14 and a further increase in already-high debtlevels resulting in weakening of the sectors credit prole

Rohit Jain a partner at law rm Economic Laws Practice saidthere isnt enough clarity on transitional provisions under GSTwhether it pertains to credit of inventory credit on unsoldstock or the tax implications where part payments are madeunder the pre-GST and part under the new taxation system

Sponsored Links

Sponsored Links

SavingsUnion

Top 10 Most Customer Friendly Banks

You May Like

Astro Conquest

LaseTripscom

You can play this Game in your browser for free

One of The Cheapest Ways to Get a Flight Ticket

Scientists develop fuel fromwater via semi-articialphotosynthesis

AndhaDhun New PosterWhen Radhika Apte fell inlove with blind AyushmannKhurrana

SOCIAL STREAM IndiaTV News

25 m

SCST Act MP on highSCST Act MP on highalert as upper caste groupsalert as upper caste groups

IndiaTV12

Social media cell phoneSocial media cell phoneusage for soldiers shouldusage for soldiers should

ces byt

942018 With no GST breather ready-to-move-in flats to cost more | India News ndash India TV

httpswwwindiatvnewscombusinessindia-with-no-gst-breather-ready-to-move-in-flats-to-cost-more-389091 45

Write a comment

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ILD Grand GurgaonBook Luxury 3 BHK Homes At Sector 37C Gurgaonhellip

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Aadhaar + PAN + 3 mins = Axis ASAP Savings Account

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Infrastructure gaps in judicial systemshould be addressed before it leaves scaron justice administration CJI Dipak Misra

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Drunk man urinates on womanpassengers seat on Air Indias New York-Delhi flight Jayant Sinha orders probe

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copy 2009-2018 Independent News Service All rights reserved

Site Map | Legal disclaimer | Privacy Policy | CSR Policy | Complaint Redressal | Rss

Contact Us About Us Careers Advertise Complaint Redressal In the Press Salaam India Awards Investors Column

21 Years Aap ki Adalat Hindi News English News

Mobile Zone Mail Alerts Facebook Twitter Fan Blogs on Wordpress Fan Blogs on Blogspot India Tv Contest Hints

Live TV Buzz Photos Videos Gold Contest Latest News in Hindi News India Sports News Business News India

Business News Stock Market Live Gold Price

Page 5: With no GST breather, ready-to-move-in ats to cost moreelplaw.in/wp-content/uploads/2018/09/With-no-GST... · 9/4/2018 With no GST breather, ready-to-move-in flats to cost more |

942018 With no GST breather ready-to-move-in flats to cost more | India News ndash India TV

httpswwwindiatvnewscombusinessindia-with-no-gst-breather-ready-to-move-in-flats-to-cost-more-389091 55

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3000

or

I agree with Vuukles Privacy Policy

TALK OF THE TOWN 128293

Infrastructure gaps in judicial systemshould be addressed before it leaves scaron justice administration CJI Dipak Misra

7 comments

Rafale deal row Rahul Gandhi once againattacks Arun Jaitley

6 comments

NIOS DElEd 2018 Result First semesterresults announced here is how to check official website niosacin

3 comments

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2 comments

Drunk man urinates on womanpassengers seat on Air Indias New York-Delhi flight Jayant Sinha orders probe

0

Name

Email

POST

ces byt

India TV

Be connected

Other Services

copy 2009-2018 Independent News Service All rights reserved

Site Map | Legal disclaimer | Privacy Policy | CSR Policy | Complaint Redressal | Rss

Contact Us About Us Careers Advertise Complaint Redressal In the Press Salaam India Awards Investors Column

21 Years Aap ki Adalat Hindi News English News

Mobile Zone Mail Alerts Facebook Twitter Fan Blogs on Wordpress Fan Blogs on Blogspot India Tv Contest Hints

Live TV Buzz Photos Videos Gold Contest Latest News in Hindi News India Sports News Business News India

Business News Stock Market Live Gold Price