Realty companies have time till June 30 to fill GST on reduction in input purchases from dealers
Real estate companies, who opted to pay Goods and Services Tax (GST) at a rate less than April 1, 2019, haven’t been ready to purchase 80 percent of the entire supply from registered dealers, to fill GST on the shortfall in purchases The time is until 30 June. From April 1, 2019, the GST Council gave a choice to those land companies who don’t want to avail input decrease (ITC) at the speed of 5 percent for residential units and one-hundredth for affordable housing.
However, companies choosing this feature were mandated to get a minimum of 80 percent of their inputs from registered dealers. GST will need to be paid on whatever shortfall is going to be made during this purchase. For this, GST will need to be paid at the speed of 18 percent for supplies employed by land developers as inputs or input services and 28 percent for cement. On 24 June, the Revenue Department said during a directive to the Principal Chief Commissioners of Central Tax, it’s been decided that within the event of purchase below the above limit of 80 percent, the promoter or developer will need to pay tax on the worth of the input. Such deficient input services and payment of this tax are going to be made electronically on the common portal by the top of the quarter after the fiscal year through a prescribed form. during this way, tax is to be paid by June 30, 2020, on such reduction for the fiscal year 2019-20. Rajat Mohan, Senior Partner, AMRG & Associates, said that land developers falling within the lower income bracket of 1 and five percent are under considerable liabilities. they need to pay it in cash by 30 June without using input decrease.
June 30 to fill GST
He said that the important estate sector is now looking forward to extending this liability deadline, as its sources of income are already stalled thanks to the Coronavirus epidemic. Because its sources of income are already disrupted thanks to the Coronavirus epidemic. due to the coronavirus epidemic, its sources of income are already being disrupted.