"The government recently clarified the effective rate of tax under pre- and post-GST regime on sale of under construction property, or ready to move-in flats, where Completion Certificate has not been issued at the time of sale. The government clarified that the effective tax rate under GST has not increased, as the input tax credit has now been made available. The input tax was restricted under pre-GST regime, wherein the tax incidence was 15-18%, vis-a-vis the present GST at the rate of 12%. This explains the myth that property prices have gone up post implementation of GST."
Suresh Nandlal Rohira
Partner, Grant Thornton India LLP
This article appeared in DNA India on 13th December, 2018.