With repeated complaints coming from homebuyers regarding demand of hefty charges in the name of Goods and Service Tax (GST) during booking of flats, the Finance Ministry has once again made it clear that the GST is not applicable on flats which are ready to move.
The Ministry simplified it by saying that if the Completion Certificate (CC) has already been issued by the government authorities (Noida and Greater Noida Authority) at the time of the sale of the flat, the builder or the developer cannot impose GST on the total value of flat.
The issuance of CC means that the construction of the building has been completed as per the building map approved by the development authority. However, the homebuyers will not get relief from GST charges on under-construction buildings during the booking of the flats.
“It is brought to the notice of buyers of constructed property that there is no GST on the sale of the complex/building and ready to move flats where the sale takes place after the issuance of completion certificate by the competent authority,” finance ministry’s notification read.
Homebuyers, who have booked their flats in ready to move flats in Greater Noida, talking to City Spidey said that the decision would benefit them as they would not have to pay the extra GST amount on the total cost of their flats.
However, despite all these clarifications from the ministry on this much contentious issue, many believe that homebuyers may not pay GST but the builders can increase the prices of flats to recover it indirectly.
Vikash Kumar, a resident of Panchsheel Greens in Greater Noida West said, “The finance ministry should have also cleared that what if only OC (Occupational Certificate) is being issued by the government and not CC? Because, here in Greater Noida West, almost all the societies have been issued only OC but not CC from the Greater Noida Authority. Will a buyer be levied GST if CC is not obtained by the developer but flats are in ready to move stage?”
“I had booked my flat in 2016 with a total value of Rs 45 lakh and had paid Rs 2.70 lakh as GST charge at the rate of 6 per cent,” said Sarad Kumar, a resident of Casa Green society in Greater Noida West.TAGS: GST on ready to move properties / Finance Ministry on GST on properties / Real estate GST / GST after completion certificate / Noida news