GST tax rate on property changed after implementation of GST on July 1 2017. Moreover GST or Goods and Services Tax replaced multiple taxes. So there will not be VAT, Service Tax, Commercial Tax, Central Excise Duty and other taxes. Therefore you can know about GST tax that home buyers must know here.
GST on under construction properties
As GST started across India. So GST charges on under construction property will change. And GST on under construction is 12 %. However this tax does not include registration charges. In addition stamp duty will be extra. Thus you pay for both registration and stamp duty charges.
Apart from above things you should know some more things. First is that 12 % GST is on under construction properties. While works contract manage under construction property. Further according to GST works contract is taxable. It also includes input tax credit.
In such cases developers get more benefits. Therefore they pass these benefits to you as well. Besides these incidents affect prices of properties in India also. On other hand you can know more about Systematic Investment Plan Calculator or SIP.
GST not applicable in some cases
On other hand GST does not apply in some cases. And here ready to move in projects or completed properties will not have GST. Plus there is reason for this statement. It is that indirect taxes will not be there when selling these properties. Thus if properties get Completion Certificate then there will not be GST.
GST effect on EMIs
As you read before there is no GST on ready to move in apartments. As they do not come under indirect tax. Additionally there is no change in principal amounts or interest that you paid already on properties.
In other case if you booked under construction property then you may pay some more amount. However this is only from July 1. Moreover banks may increase either repayment tenure or loan amount. But it depends on banks.
Do not pay advance Service Tax
You should know most important thing. And it is that you do not pay any advance Service Tax. So you do not pay this tax to builders. In addition there is no rule of filing advance Service Tax. Hence you be careful before you take final decision.
Input tax credit benefits after GST implementation
Input tax credit benefits depend on amount pending on property. Therefore whatever is amount you pay 18 % of pending amount. And this applies to property owner and builder. While this applies to outstanding amount on property only. Additionally idea of PIN code search method will be plus point.
When will property price decrease?
As per sources property prices will decrease. However this is because of GST rate of 12 % that applies on under construction property. Therefore prices of property completely depends on GST implementation.
Also you do not worry about benefits of tax credit. As there is anti-profiteering provision. Thus because of this dealer must pass GST benefits to all end consumers. On other hand buyers may choose ready to move in apartments or properties.
As they do not pay GST. However final situation will be clear in a few days. And till then many buyers are not buying any property for now. However they will buy property after some time. In addition you can know more about National Stock Exchange or NSE.