Information about GST & RERA
We are concerned about our customers so that we want our customers to be updated about recent changes. Two major changes made recently in laws applicable to construction industry.
One is GST and other is RERA. Both moves of government have been welcomed and accepted whole heartedly by Real Estate sector so we have!
GST (Goods and Services Tax)
Earlier vat, service tax, etc. were applicable to real estate sectors and now they have been renamed by government as Goods and Service tax. So GST is not an additional burden on the buyer since before GST laws, VAT and Service taxes were applicable and payable by the buyer. All are indirect taxes. Difference is of the name only. Earlier we used to call them as VAT and Service Tax and now we recognize them as GST.GST with its “One Nation One Tax” has removed the confusion regarding the tax treatment.
GST Rates
Don’t get confused about rates applicable! Its very simple if you are buying Flat/Shop/Apartment etc i.e. any unit of the project where it is residential or commercial 12% GST rate is applicable. There is no bifurcation of commercial and residential units of the project. Rate of GST applicable is 12%.Now if you are taking any additional construction services , or you have any works contract to offer then 18% GST rate will be. applicable on the contract value. A works contract is a mixture of service and transfer of goods.
GST Applicability
GST is not applicable on properties which are completed as well as completion/occupation certificate is obtained for the property. That means if the project is under construction then and then only GST is applicable.
GST only on under-construction property and not on ready-to-move-in properties
- The CBEC has also clarified the applicable rate of GST on under-construction as well as ready-to-move-in property.
- In case of purchase of under-construction residential or commercial property, from a builder, involving transfer of interest in land or individual share of land to the buyer, the effective rate of GST for such purchase would be 12%, with full ITC.
- GST would be levied @18% on 2/3rd of the amount of the property, whereas 1/3rd of the amount was deemed to be value of land or undivided share of land supplied to the buyer.
- The consideration amount which did not constitute transfer in land or undivided share of land as part of the consideration, for instance, construction services provided by a sub-contractor to a builder, would attract levy of GST @ 18%, with full ITC.
Property on which completion certificate has been issued
The clarification states that no GST would be levied on ready-to-move-in or completed property
RERA (Real Estate Regulatory Authority)
For the benefits of the unawares, RERA is Real estate (Regulation and Development) Act India published on 26th March 2016 towards the benefits of the allottees (read buyers of property) and reduce discrepancy between the stated facilities, amenities and host of other promised services and received ones to allot-tees. With this the allot-tees are more empowered and the builders/developers are ethical and righteous. It has one important part, which intends to deal with the speedy redressal dispute system.
The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land is over 500 square meters, or eight apartments, to register with the Real Estate. Regulatory Authority (RERA) for launching a project, in order to provide greater transparency in project-marketing and execution.
Every project of M V Kulkarni, builders and developers which requires to get registered with MahaRera has been registered successfully.
Every interested person can go to MahaRERA website and check the every minute detail of the project.
You just need to:- go to https://maharerait.mahaonline.gov.in/searchlist/search?MenuID=1069
- Select project type: Registered project
- Enter Project name: Enter the name of the project in which you are interested to know more
- MahaRERA Registration No: Enter the given RERA registration no [RERA Registered project must specify RERA Registration no. on every advertisement. So you will easily find RERA registration number of every registered project wherever the project details are given ]
- Click on Search button and you will find all details
Since the project is located at prime location, we have been benefited for our business since its purchased . To our surprise the price of shop was in our budget. I found it very good combination of best quality, prime location, reasonable price !!
- Priyanka Narker
