Skip to main content

ACTION AGAINST GURGAON BUILDERS FOR NOT PASSING ON GST BENEFIT TO HOMEBUYERS




The GST Act mandates the builders to pass on GST benefits to the buyers paying GST on purchase of property. While the overall cost of construction seems to have gone down under the GST regime on account of additional input tax credit for builders, the intent to pass on the benefit of lower cost to the property buyer still seems to be missing from the market.

In order to ensure that homebuyers get this benefit, the government has started questioning developers/builders who are not passing on the reduced rates and additional input tax credit (ITC). The National Anti-Profiteering Authority (NAPA) has imposed a penalty on a Gurgaon-based real estate developer Pyramid Infratech for not passing on the benefits under the Goods and Services Tax (GST) regime. The builder was asked by the Authority to refund within 3 months over Rs 8.22 crore to about 2,476 buyers with an additional 18 % interest.

The Directorate General of Anti-Profiteering (DGAP) is investigating over 50 property developers for not passing the Goods and Services Tax (GST) benefits to end consumers. These developers include some of India's top builders who are facing probe for profiteering under the GST regime.

The DGAP is trying to ascertain if the real-estate developers made excessive profits by not passing on the benefits of input tax credit available to them to the end consumers.

The anti-profiteering body has by far probed about 125 cases and discovered that 60% of them had indulged in anti - profiteering.


Labels:

Comments

  1. Unknown14 May 2019 at 08:55

    Good Posting. Such small write up on critical issues surrounding real estate sector would help the readers and prospective investors.

    ReplyDelete
  2. Kumar14 May 2019 at 10:35

    Good to note this. Many would not be aware of it. Thanks for raising the awareness.

    ReplyDelete

Post a Comment

Popular posts from this blog

RERA Awards Rs. 65 Lakhs Compensation to Homebuyer for 9 Years Delay in Flat Possession

  CA Ramesh Agrawal In a recent decision, the Haryana Real Estate Regulatory Authority (HRERA) has directed a builder to compensate a homebuyer with ₹65 lakh for an inordinate delay of over nine years in handing over a flat in Gurugram. Key Highlights: Background of the Case : The homebuyer had booked a flat in 2013, with the developer promising possession within a stipulated timeframe i.e., 7 th December 2015. However, the possession was delayed by more than nine years. Developer's Justifications : The builder attributed the delay to unforeseen circumstances, including the COVID-19 pandemic, the demise of the chairman of environmental impact assessment (EIA) committee, and inadequate water supply. H-RERA's Verdict : After reviewing the case, HRERA rejected the developer's justifications, deeming them insufficient to warrant such a prolonged delay. The authority emphasized that the reasons cited did not qualify as fo...
Post a Comment
Read more

Municipality Demolishes Illegal & Unsafe Structures

  CA Ramesh Agrawal The Sambhajinagar Municipal Corporation (CSMC) has started an anti-encroachment campaign, to keep the city clean, safer, free up public space, etc. Details of the same are mentioned as below: - Drive Moves To Gulmandi Area: - After cleaning up areas like Beed Bypass and Mukundwadi, now the clean campaign has moved to Gulmandi area, which is busy & crowded market zone. The move shows that the Authorities are serious for removing illegal building all across the city. Illegal Constructions & extension demolished: - The Authorities have targeted illegal buildings & extension of around 25 Shops in bustling Rangar Galli Market & its surrounding areas. During the operation demolition of a run-down building was carried out with the presence of police. Ongoing Efforts : - Additional Municipal Commissioner, Mr. Santosh Wahule explained that this campaign in Gulmandi was carried out on the instructions of the Civic Chief G. Sreekanth. This clean campaign ...
Post a Comment
Read more

Mandatory Uploading of Occupancy and Completion Certificates

  CA Ramesh Agrawal In a significant move to enhance transparency and protect homebuyers' interests, the Odisha Real Estate Regulatory Authority (ORERA) has mandated that developers upload occupancy and completion certificates of housing projects onto its official website. This directive aims to ensure that residential projects comply with established norms and are fit for habitation.​ Definition of Certificates: Completion Certificate: A legal document confirming that a building has been constructed in accordance with approved plans and complies with all applicable regulations. Occupancy Certificate: A document issued by the local authority certifying that a building is suitable for occupation, ensuring it meets all necessary safety and habitability standards. Mandatory Upload Requirement: Developers are now required to upload both completion and occupancy certificates onto the ORERA website upon proj...
Post a Comment
Read more