Since introduction of GST from 1st July, 2017, existing buyers of under construction projects have been forced with the maximum GST applicable. 18% GST is applicable to BSP of under construction project out of which 1/3rd i.e. 6% is deducted as abatement for land cost. Hence, effective GST applicable is 12%. The builders will always charge the maximum 12% (6% Central GST + 6% State GST) from buyers. However, as per government notification, builder is also supposed to pass on the benefit of input credit to the end consumers (buyers in this case). Hence, there shall be a discount of approximately 6-7% on BSP which shall be offered at or before time of final demand. You may further see here how we arrived to the approximate figure of input credit of 6-7% on BSP.
But as a matter of fact, builders are not offering any discount or reduction in BSP of property prices at least to existing buyers. When confronted with the builder, in some cases, builder promised paying back the input credit once received from government after GST filing. However again, builder does not give this in writing. In either case, it is crystal clear that benefit of input credit is not being proactively passed to existing buyers. Hence, it is imperative to understand procedure of GST complaint against builder (to higher authorities).
GST complaint can be filed against builder through Public Grievance portal i.e. http://pgportal.gov.in/grievanceNew.aspx One needs to select Public Grievance and select Ministry as CBEC i.e. Central Board of Excise and Customs and category as ‘Policy and Regulatory’.
Provide personal details an fill details of grievance against builder related to GST. Specify builder name and attach final demand. You will get a grievance reference # which can be tracked through the portal itself. It generally takes 30 days to 45 days to receive a response.
In addition to the above, buyer may also write an email to email@example.com and firstname.lastname@example.org, the former however is intended more for dealers/manufacturers.
Last updated: August 30, 2017 at 15:06 pm