Direct Tax Services
Audit
Consulting
ESG Advisory
Indirect Tax Services
RBI Services
SEBI Services
IRDA Registration
FEMA Advisory
Compliances
IBC Services
VCFO Services
Developed
Developing
BOTs
American
EU-1
EU-2
South East
South Asia
Gulf
ME
Select Your Location
The GST council meeting took a significant decision about the fate of realty firms in the GST regime. The council reportedly extended the GST deadline of opting for old GST slab.
The deadline has been extended to 20th May 2019 from the earlier deadline of 10th May. Firms working under realty sector can choose their GST payment slab.
Firms can either choose the old GST rate with an Input Tax Credit(ITC) or can shift to new GST rates. The latter option attracts a lower tax rate than the former.
Table of Contents
Firms have the option to continue to the old GST rate slab of 12% GST with 8% ITC. They are also given the choice of a new GST slab. The new slab rate states GST of 5% for residential units and 1% for affordable housing units.
However, this scheme does not include the advantage of Input Tax Credit. The rates are applicable form 1st April 2019 in case the firm opts for this rate slab.
As per the directions of CBIC[1] (Central Board of Indirect Tax and Customs), the companies have a one-time option to opt for their preferable GST slab.
Once the firm chooses a particular slab, they won’t be able to modify it later on for ongoing projects.
In case the companies do not exercise their choice for GST slab, they by default will be in the lower tax rate slab. Hence, they will not be able to avail the benefit of the tax credit on inputs.
Realty sector firms can communicate their choice to their respective jurisdictional officers by 20th May, 2019.
The real state sector is being provided with a flexible option to choose a tax slab of their will. This is another move of the GST council offering the flexibility of taxation in the sector.
GST deadline has been extended to 20th May, 2019, in order to benefit the firms. With the extended period more number of companies can register their choice.
Read our article:Guide on GST For Bloggers & YouTubers
Non-Banking Financial Organisations play a critical role in offering a variety of financial ser...
A Non-Banking Financial Company (NBFC) is registered under the company law and governed by the...
If an individual is considering starting a money lending business in India, obtaining a license...
Transaction in government securities refers to any buying or selling of government-issued secur...
The Reserve Bank of India has been taking several steps to increase supervision, including adop...
Are you human?: 3 + 5 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Reverse Charge Mechanism? Reverse charge is a mechanism whereby the recipient of the services, or goods or both is...
18 Jul, 2019
The Central Board of Indirect Taxes and Customs further extended the deadline for GSTR-3B in its new notification....
31 Aug, 2021
Chat on Whatsapp
Hey I'm Suman. Let's Talk!