In a clarification to the earlier debate relating to GST charges on under construction flats, the CBIC has put forward that for the remaining balance, home buyers will be charged GST @ 12%, in case the project has received completion certificate before or by March 31, 2019.
Also, further in the FAQs, it clarified that builders will not be able to make adjustments for accumulated credits in a case when the go for lower GST rate of 5% and 1% for normal and affordable housing, respectively.
Earlier in March, decided the migration of builders to lower GST rate without the ITC benefit with effect from April 1, 2019. In respect of the ongoing projects, builders are provided with a choice to either continue with 12% slab rate with ITC of 8% for ) or opt for 5 per cent GST rate (1 per cent for affordable housing) without ITC and communicate to their respective jurisdictional officers the same by May 20.
And further, on the question to what shall be the GST implications for projects in whose case the completion certificate but payment is due to be paid towards the purchase, the FAQ said, : "Time of supply of the service by way of construction of apartments in such projects falls prior to April 1, 2019, and accordingly the rates as existed prior to April 1, 2019, would apply to such balance demands."