By Accommodation Times Bureau
In a bid to sensitize home buyers about the prospective benefits of GST, the Finance Ministry has directed the Housing and Urban Poverty Alleviation ministry (HUPA) to make provisions for holding talks and consultation sessions for developers, who can be made aware about the intricacies and nuances of the law and pass them on to home buyers. This will not only ensure awareness but boost transparency as the consumer will not be kept in the dark.
This programme has come to light as a result of the perpetual complaints received by the states and the respective tax departments. Those buyers who have booked flats and made partly payments are coaxed to make the entire payment prior to 1st July 2017 with a threat of facing higher tax incidence for payment post 1st July. This has in turn caused much panic among the consumer fraternity.
Expressing his view in this regard, finance minister Arun Jaitley, termed the situation as ‘completely wrong’ and stated that withholding valuable information from the buyers will result in action against the developers under the anti-profiteering rules. Furthermore Revenue Secretary Hasmukh Adhia stated,” “We have requested the HUPA secretary to hold meetings with real estate developers associations and make them understand.”
With GST coming into play, construction of flats, buildings, complex will attract 12% GST in lieu of the 11% tax previously. This 12% includes service tax, VAT and excise duty too.