This might sound bizarre, but living in a housing complex will cost you chock-full. GST is likely to umpire the taxability on every transaction. Taxpaying on realty apartments will be mostly unchanged as it will boil down multiple taxability into a single one. On which experts think that implementation of GST will bring down property prices nationally. While property purchase will be cheaper, living in a gated society will definitely roast your leisure.
Higher maintenance charges
GST will likely to fire up maintenance charges of the society. Post GST maintenance charge will set to get under 18% tax slab, which will levy additional burden of 2.5% on inhabitants. The existing rate is 15.55%, which includes 15% service tax, 0.5% Swachh Bharat cess and 0.05% non-agriculture tax. The liability of taxpaying is to be imposed on the end users not on the sellers. Expenses such as- legal fees, security expenses, transport charges, labour charges might attract GST on RCM (Reverse Charge Mechanism) based on whether the CHS (cooperative housing society) billing surpass Rs 20 lakh or not in the previous FY. Maintenance charge will directly payable to society.
Not including property tax
Government hasn’t subsumed property tax into the fresh tax regime. Property owners will keep paying property taxes on yearly basis according to the state GST law.
Additional charges
Barring AMC (Annual Maintenance Charge) water usage will be accountable under a separate head of GST. But electricity bill won’t be taxable under GST.
Repair or renovation to be acclamatory
In case housing society carries out any renovation, repairing or even paining and needs to buy commodities such as- cement, paint or steel, the tax paid for the same purpose will be deducted from the total amount paid under GST tax regime. But it’s only possible when the society welfare association makes full use of the input credit. Hence, the repair fund will attract 18% tax slab of GST.
Housing societies with advanced pursue and annual corpus of over 20 lacs should get registered under GST ambit. On monthly average of 5k maintenance charge if the annual maintenance cost stands over 20 lacs, then the society will be liable to pay GST. If the total billing is more than 20 lacs but less than 75 lacs the CHS may choose to call for the composition scheme.
-- LNN (Liyans News Network)- Buy flats in Rajarhat before GST. Huge sale is ongoing on the luxury residential projects. Invest in lifestyle apartments for advanced future. Save up to 5 lacs with every successful deal.
Higher maintenance charges
GST will likely to fire up maintenance charges of the society. Post GST maintenance charge will set to get under 18% tax slab, which will levy additional burden of 2.5% on inhabitants. The existing rate is 15.55%, which includes 15% service tax, 0.5% Swachh Bharat cess and 0.05% non-agriculture tax. The liability of taxpaying is to be imposed on the end users not on the sellers. Expenses such as- legal fees, security expenses, transport charges, labour charges might attract GST on RCM (Reverse Charge Mechanism) based on whether the CHS (cooperative housing society) billing surpass Rs 20 lakh or not in the previous FY. Maintenance charge will directly payable to society.
Not including property tax
Government hasn’t subsumed property tax into the fresh tax regime. Property owners will keep paying property taxes on yearly basis according to the state GST law.
Additional charges
Barring AMC (Annual Maintenance Charge) water usage will be accountable under a separate head of GST. But electricity bill won’t be taxable under GST.
Repair or renovation to be acclamatory
In case housing society carries out any renovation, repairing or even paining and needs to buy commodities such as- cement, paint or steel, the tax paid for the same purpose will be deducted from the total amount paid under GST tax regime. But it’s only possible when the society welfare association makes full use of the input credit. Hence, the repair fund will attract 18% tax slab of GST.
Housing societies with advanced pursue and annual corpus of over 20 lacs should get registered under GST ambit. On monthly average of 5k maintenance charge if the annual maintenance cost stands over 20 lacs, then the society will be liable to pay GST. If the total billing is more than 20 lacs but less than 75 lacs the CHS may choose to call for the composition scheme.
-- LNN (Liyans News Network)- Buy flats in Rajarhat before GST. Huge sale is ongoing on the luxury residential projects. Invest in lifestyle apartments for advanced future. Save up to 5 lacs with every successful deal.
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