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GST Registration in Chennai | Kanakkupillai

We knew the difficulties of GST Filling in Chennai but the expertise accountants at Kanakkupillai does it in an easy way and also at the shortest span. Ask any successful businessman about GST filing in Chennai, they would always whisper the single brand, Kanakkupillai. The cityu2019s leading Best GST Registration services are provided by Kanakkupillai at an affordable cost. To contact call us at 7305345345 and get free consulting.<br>

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GST Registration in Chennai | Kanakkupillai

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  1. Impact of New GST Regime on Real Estate Companies

  2. Increase in Input Tax Credit A recent clarification by the indirect tax department may leave a loophole in the goods and services tax (GST) system by enabling the real estate companies to claim higher input tax credit than they are entitled to.

  3. Realtors can opt for old GST rates • The GST Council had given the option to real estate companies to either opt for old rates of 12 per cent (for residential) and 8 per cent (affordable housing) with input tax credit (ITC) benefits or the new tax rates of 5 per cent for residential units and 1 per cent for affordable housing without the benefit of adjusting the credit on inputs used during construction. • The Central Board of Indirect Taxes and Customs (CBIC) has issued a notification giving real estate companies a one-time option to choose either of the tax rates.

  4. Impact of new GST rates on the real estate fraternity • Choosing between the old and the new GST rates, will be a business call that each developer will have to make, as per their assessment of market and liquidity conditions. • The withdrawal of the ITC is expected to marginally bring down developers’ turnover, as it may be difficult for them to absorb the rising costs of construction. • Real estate  firms have time till May 10 to communicate to their respective jurisdictional officers whether they want to continue with the old GST rates with input tax credit, failing which they will be deemed to have migrated to new tax rates.

  5. Over 50 builders face probe for profiteering under GST • Before GST was introduced in July 2017, various taxes levied by central and state governments on under-construction property added up to 5.5-6.5%. Under GST, real estate was placed under the 12% tax slab. Many builders duly raised prices, even though they could now claim input tax credit against products and services on which they had already paid tax. • In the pre-GST era, there was no input tax credit facility on construction materials like cement and steel, which was there in the GST regime (till March-end). This called for a price cut, not a price increase,"theperson cited earlier said on condition of anonymity.

  6. What will developers choose? • For the projects launched before April 1, 2019, the GST Council allows the developers to stick with the old GST rates, with ITC benefit. “So, the developers are likely to go with the old GST rate for those projects, as they have already factored the sale price keeping in mind the GST and in many cases the benefit of ITC was passed on to the buyers,” says MD of Sikka Group. • With the input tax credit being taken away, there will be an immediate cost implication for developers. However, it is up to the developers to decide if they want to clear their existing inventory by adopting the reduced rate regime, or stick to the previous arrangement should their profit margins be tighter and if they are confident of clearing the inventory at higher GST rates to the end-user.

  7. Reduced GST rate for real estate: Impact on property prices When the rate of tax decreases, the value of a product or service should also perceive a corresponding reduction. However, the structure of GST is such that in some cases, particularly where the ITC cannot be claimed, the prices may not decrease. This implies that the planned decrease in GST rates for under-construction housing projects, may not result in lower values of residential units. It may also raise the level of complexity for developers.

  8. GST registration Online in Chennai Now it is mandatory for every company to file GST and if any fails to do so, the government of India would take necessary action. How about GST registration online? Though its a tedious task Never get cheated in this name. Visit Kanakkupillai to find the easiest method for GST registration online. Ask any successful businessman about GST filing in Chennai, they would always whisper the single brand, Kanakkupillai. The city’s leading Best  GST Registration services are provided by Kanakkupillai at an affordable cost.

  9. Contact US CHENNAI OFFICE No 13/22 2nd floor, Yatra, TNGO Colony, West Karikalan street, Adambakkam, Chennai – 88 Phone: 7305 345 345 Email: support@kanakkupillai.com https://www.kanakkupillai.com/

  10. THANK YOU

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