Prasad told realtors from across the state to inform their respective officers over the GST rate choice.
Chartered accountant and GST consultant A Siva Prasad called upon realtors to communicate to their respective jurisdictional officers whether they want to continue with the old GST rate with Input Tax Credit (ITC) or go with the new tax rate which will come into force from May 10 onwards. However, he advised the realtors to opt the newer tax rate saying it would be more beneficial to them.
Speaking at an interactive session organised jointly by GST officials and Vijayawada chapter of Confederation of Real Estate Developers Association of India (CREDAI) for property developers here on Monday, Siva Prasad said, “The GST council has given an option to real estate companies to opt for old rates of 12 per cent (residential) and 8 per cent (affordable housing) with input tax credits (ITC) benefits. However, till date majority of the real estate companies are still in a dilemma whether to opt for the new tax rate or continue with old GST rate as per the notification issued by Central Board of Indirect Taxes and Customs (CBIC). If the realtors do not exercise the option, they will be covered under the lower tax rate of 5 per cent and 1 per cent with effect from April 1, 2019 and will be not eligible to avail ITC benefits,” he added.
The GST consultant also clarified the queries raised by the property developers during the session. CREDAI Vijayawada chapter president RV Swamy said that now is the perfect time for potential property buyers to purchase properties in the city and across the state as the Centre is collecting only one percent GST on the property value.
In this regard, CREDAI has been sentising property developers and real estate companies on the tax and rules framed and implemented by the government. GST additional director Ramesh, CREDAI Andhra Pradesh Chapter president A Siva Reddy and builders from across the state participated in the session.
Source- New Indian Express.