Q: Advantage of Registration under GST GST provided input credit benefit for all the Goods purchased or services availed by the society i.e. Lift AMC, Housekeeping, Security, Fire AMC, Repairs & Maintenance, Contract staff, Accounting & Auditing Services, Software ADDA Portal & other services etc. For example, if the GST will be charged at the rate of 18% , or at applicable rates Reverse charge , for the services availed or goods purchased for these goods and services, same will be available for input to the society and can claim as refund if no output liability or fall under exemption with minimal compliance cost. Subject to input tax credit apportionment for taxable and exempted services. Earlier there was no credit available for good purchased for the society, under GST society can avail the benefit of input. This will reduce the overall cost to the society.
But it is a win-win situation for those builders who kept their project on hold. They will have to bear the tax burden for the ready-to-move in projects since they are kept out of GST ambit. At the same time, the government has told developers to pass on any benefits that they may get under the new tax system to the home buyers.
Yes, GST will turn India into one common market, will open the way for greater ease of doing business and big savings on logistic costs from companies across all sectors. Some companies will gain more as the GST rate will be lower than the current tax rates they pay and others will loose as the rate will be higher than the present effective rate.
Right Sharbani, The option of getting full input set-off credit that developers enjoy on under-construction projects would not be applicable on ready-to-move-in flats. This could effectively mean higher costs for home buyers of ready-to-move-in flats.