Reduced liability of tax on homes under GST - OLD

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..... before 1st July, 2017, are being asked to bear higher tax incidence for payments made after 1st July, 2017. This is against the GST law, as explained below. Construction of flats, complex, buildings have a lower incidence of GST as compared to a plethora of Central and State Indirect Taxes suffered by them under the earlier regime. Central Excise Duty was earlier payable on most construct .....

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..... of the flat. The earlier headline rate of Service Tax on construction of flats, residences, offices etc. was 4.5%. Over and above this, VAT @1% under composition scheme was also charged. The buyer only looked at the headline rate of 5.5%. In other Cities/States, where VAT was being levied under the composition scheme @2% or above, the headline rate visible to the customer was above 6.5%. What .....

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..... should not ask customers to pay higher amount of installments inclusive of all taxes to be received after imposition of GST. Despite this clarity on law position, if any builder resorts to such practice, the same can be deemed to be profiteering under section 171 of GST law. - Manuals - Ready reckoner - Law and practice - Reference Guide - Quick Commentary Tax Management India - taxm .....

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