
GST authorities should clarify on undue GST-demand made by private builder-groups
It is quite usual that private builder-groups are charging GST on previously booked units (flats, apartments, villas etc) at the old increased GST rate of 12-percent as was before 31.03.2019, even if these units are completed and allotted after 01.04.2019 when GST-rate was reduced to 5-percent. This is despite the fact that agreements signed clearly mention that the total price would be inclusive of taxes and cesses applicable on date of agreement with a condition that any decrease in taxes and cess, the booking company shall refund the excess amount charged at old increased GST-rate. There are instances where GST was reduced from 12-percent to 5-percent w.e.f. 01.04.2019 and the project was not completed till 31.03.2019. GST on such booked unit must have been revised to 5-percent from ear...