GST may raise price of flats nearing completion

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          GST may raise price of flats nearing completion

If you are paying for your house in installments to the builder you may end up paying 12% GST on payments due from july 1 onwards,instead of 4.5% service tax that you paid on installments till June 30.

Similarly, if you plan to buy a house after July 1 in a project that in a project that is complete or nearing completion, you will, have to pay tax at the rate of 12% on the entire amount.

Builders claim that the 7.5% increase(12%-4.5%) in tax post GST is because they will not be able to claim any credit for taxes paid on inputs bought before July 1.

For projects that are nearing completion or complete, most buyers would have paid 90-to-95% of the price, whether they are on a construction-linked or a down payment plan.

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