The deadline for realtors to opt for the old GST rates with ITC (Input Tax Credit) for on-going projects has been extended by 10 days, i.e., the last date for the same is now till 20th May 2019. The developers now have an option to choose between the old GST rates or might shift to new lower tax rates.
The real estate sector have been granted to shift to 5 per cent GST rate for residential units and 1 per cent for affordable housing without the benefit of ITC (Input Tax Credit) on March by the GST Council. However, the developers do have an option to choose between the old GST rates and the new ones for the on-going projects. And for that, they have been accorded the deadline of until 20th May 2019, which was earlier until 10th May 2019. The developers won’t be conceded with the option of modifying their choice after 20th May as this is a one-time process and needs to be decided very carefully.
Mr. Pradeep Aggarwal, Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development, Founder & Chairman – Signature Global elaborates, “The government have been very thoughtful about the real estate sector especially the affordable housing segment. Now, with the introduction of the new GST rates and the extension of the deadline by 10 days, it will give more time for the developers to think about the decision as this is a very crucial decision to be taken on part of the developers.”