Projects in Gujarat get a GST breather
In a major relief to real estate developers, State Commercial Tax Department has extended the deadline for adopting old Goods and Service tax (GST) rates for under-construction housing projects. The deadline for declaration in the form of Annexure-IV has been extended to May 20 from May 10 previously. In March, the GST Council had reduced tax rates on residential real estate properties from 12% with input tax credit (ITC) to 5% without ITC. For affordable housing projects, the rate was brought down to 1% without ITC from 8% with ITC. New real estate projects starting after April 1, 2019, now attract 1% GST in affordable category and 5% in the non-affordable category. However, for ongoing residential projects, the developers were given an option to choose either the new tax rates or continue charging the old rates of GST. According to an official statement from state commercial tax department, the declaration to the jurisdictional commissioner were to be made till May 10, 2019. The deadline has been extended till May 20, 2019.
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