This news should bring a smile on the faces of home-buyers who paid excess GST to their builders. The Tamil Nadu Real Estate Regulatory Authority (TNRERA) recently directed a promoter to return the additional GST collected from a customer. TNRERA made it clear that homebuyers have the right to claim the benefits of input tax credit (ITC).
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You can expect the finest amenities, landscaped gardens, contemporary architecture, tree-lined pathways, essential services and a builder who will go the extra mile to offer facilities for a joyous and energetic lifestyle that you and your family deserve. Being a sports township, you can sweat it out at one of the 12 sports venues including the golf course, tennis, and even a polo ground and equestrian events.
The focus on customer delight is what separates Hiranandani Parks from other builders in Chennai. As per media reports, the issue under question pertains to two homebuyers filing a case with TNRERA demanding that a builder return the additional 7% GST collected for an ongoing project at Pazhavanthangal
The complainants, Usha Ravikumar and B Ravikumar, paid GST of Rs 7.33lakh at the rate of 12% for a flat measuring 1,630sqft, The Times Of India reported. Noting that the under-construction project was delayed, the complainant said that GST of 12% was collected instead of 5% for the project. The homebuyers had entered into a construction agreement with the developer in July 2017, the report added.
The agreement specified that their flat should be handed over by June 2019. Later, a revised agreement was drafted extending the construction period till November 2019. Meanwhile, the developer responded to the TNRERA saying promoters with incomplete housing projects till March 2019 can exercise an option to continue with old GST rates of 12%.
Though demanding that the real estate regulator dismiss the plea of the homebuyer to refund GST, the developer, however, offered to pay rent for the delayed period from July till the flat is to be delivered, as per reports.
In his order, G Saravanan, TNRERA adjudicating officer, said the GST rates for ongoing projects, according to a notification of the GST council, was 5% effective April 1, 2019.
However, the promoters had the option to choose 12%, avail of permissible ITC and pass the benefit of the credit to the homebuyers.
“In an emailed communication, the developer assured that the benefit due to ITC will be passed on to the customers, which will be done at the stage of handing over the flat,” the order said. Therefore, the complainants have the right to claim the benefit of ITC, the order added.
The TNRERA also directed the developer to pay Rs 8,150 monthly rent to the homebuyer for the delay in handing over the apartment, besides compensation of Rs 1.25 lakh for causing mental agony and legal expenses to the buyer, as per The Times of India.
Avoid unnecessary legal tangles and delays. Partner with a builder with a reputation for dependability and state-of-the-art execution to exceed expectations.