Section 171 of GST, as an anti-profiteering measure, provides that it is mandatory to pass on the benefit due to a reduction in the rate of tax or from input tax credit to the consumer by way of a commensurate reduction in prices.
In practice, how can a homebuyer get input credit from the builder? Does anyone have a draft letter to ask the builder to pass on the input credit to the consumer? Most builders remain quiet as there is a switch from service tax plus VAT to GST for buildings under construction.
G. Vasantharajan
From India, Chennai
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In practice, how can a homebuyer get input credit from the builder? Does anyone have a draft letter to ask the builder to pass on the input credit to the consumer? Most builders remain quiet as there is a switch from service tax plus VAT to GST for buildings under construction.
G. Vasantharajan
From India, Chennai
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Ultimate buyer gets no ITC.
Builders are expected to pass on ITC, which they get through their purchases for building the project, and use it to lower the final price for buyers. It is always best to opt for a completed building with a Completion Certificate (CC) where no Goods and Services Tax (GST) is applicable, after conducting a thorough review of the legal documents.
From India, Pune
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3180Builders are expected to pass on ITC, which they get through their purchases for building the project, and use it to lower the final price for buyers. It is always best to opt for a completed building with a Completion Certificate (CC) where no Goods and Services Tax (GST) is applicable, after conducting a thorough review of the legal documents.
From India, Pune
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Order No. 1-2018 Extension of date for submitting the statement in FORM GST TRAN-2.pdf