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Saturday
October 2017
11:17 PM IST
News Headlines
Alka Yagnik and Udit Narayan to get Lata Mangeshkar Award        Rahul asks Modi not to interfere in Tamil movie Mersal        Aadhaar linkage with bank accounts mandatory, says RBI        Pak firing claims one more life in Jammu and Kashmir        Don't invite me for Tipu Jayanti event: NDA Minister        Al Shifa hospital at Edappally to close down        Private security for Dileep: Police suspect violation of bail conditions        One killed in Ponkunnam accident        Debate on development impossible in Kerala, says Kummanam        Surendran challenges CM Pinarayi        Haryana singer Harshita Dahiya killed on her brother-in-law's order, say police        Smriti Irani hits back at Rahul over his tweet on Jay Shah, says person 'out on bail' is mocking court        After 12 years, CBI seeks govt nod to appeal against clean chit in Bofors case        Modi to visit Gujarat on Sunday, inaugurate slew of projects        Congress didn't allow me to redevelop Kedarnath after 2013 floods: PM Modi        Pollution killed 2.5 million people in India in 2015: study        Ranjit Kumar resigns as solicitor general        US-backed forces hail 'historic victory' over Islamic State in Raqqa        EXPAND Obama, Bush decry deep US divisions in Trump era        FIFA U-17 World Cup: Ghana Face Mali in All-African Quarterfinal        
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National News
Finance Ministry to HUPA: Engage realtors to pass GST benefit to buyers
 
(New Delhi, June 18,2017):After complaints surfaced of real estate developers asking for a higher rate of taxation of 12 per cent, against 4.5 per cent currently, after the goods and services tax (GST) rollout from July 1 from homebuyers who have booked flats and made partial payments, the finance ministry has asked the housing and urban poverty alleviation (HUPA) ministry to sensitise states and the real estate regulator to hold consultations with developers. The ministry wants developers to pass on benefits of input tax credit received by them on construction to homebuyers.

When asked on this issue, Finance Minister Arun Jaitley said “this is wrong” and real estate developers should pass on the benefits of input tax credit to buyers or else they would have to face action under anti-profiteering rules.

Revenue secretary Hasmukh Adhia has written to HUPA secretary, asking for sensitising all the states as well as the regulator under the Real Estate (Regulation and Development) Act, 2016 (RERA). “We have requested the HUPA secretary to hold meetings with real estate developers associations and make them understand,” Adhia told reporters here.

Construction of flats, complex, buildings will attract a 12 per cent GST compared to about 12.5 per cent excise duty at present and VAT of around 12.5-14.5 per cent levied by states.

Jaitley said the real estate builder will enjoy the benefit of input credit, which will be deducted from tax liability. “The lowered tax liability should lead to price reduction. The price reduction has to be passed on to the customer,” Jaitley said.

Asked if the anti-profiteering rules will apply if the home builder fails to pass on benefit, the minister said, “Anti-profiteering rules can apply. But we want to use the anti-profiteering rule as a deterrent. I hope we are not compelled to use it.”

The GST Council in its Sunday meeting cleared the anti-profiteering rules. As per the rules, if the Directorate General of Safeguards (DGS) after investigation establishes anti-profiteering, then the taxpayer would be directed to reduce price or return the amount equivalent to the amount not passed to the recipient by way of commensurate reduction in prices. Where the consumer cannot be identified, the recovered amount shall be deposited in the Consumer Welfare Fund as provided under Section 57 of the Central GST (CGST) and State GST (SGST) Acts, a senior government official said.

Also, as per the norms, the anti-profiteering provision will have a sunset date of two years.

A five-member anti-profiteering authority will be set up to decide on levying penalty if businesses do not pass on the benefit of price reduction to consumers under GST. The authority, to be headed by a retired secretary-level officer, can take suo motu action, besides acting on complaints of profiteering, the official said. A search-cum-selection committee will be set up for finalising the members of the anti-profiteering authority. Officials said it is likely to take about two months to finalise the members. Besides the Chairman, the four other members of the authority will be joint secretary-level officers who have been commissioners in central excise and service tax either at the Centre or states.

As per the structure, the complaints of profiteering would first come to the Standing Committee comprising tax officials from states and the Centre. It would forward the complaint to the Directorate of Safeguards (DGS) for investigation, which is likely to take about 2-3 months to complete the inquiry. On completion of investigation, the report would be submitted to the anti-profiteering authority which would decide on the penalty.

Section 171 of the Central GST Act provides that any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit will be passed on to the recipient by way of commensurate reduction in prices.


Aadhaar linkage with bank accounts mandatory, says RBI
Pak firing claims one more life in Jammu and Kashmir
Don't invite me for Tipu Jayanti event: NDA Minister
Haryana singer Harshita Dahiya killed on her brother-in-law's order, say police
Smriti Irani hits back at Rahul over his tweet on Jay Shah, says person 'out on bail' is mocking court
After 12 years, CBI seeks govt nod to appeal against clean chit in Bofors case
Modi to visit Gujarat on Sunday, inaugurate slew of projects
Congress didn't allow me to redevelop Kedarnath after 2013 floods: PM Modi
Ranjit Kumar resigns as solicitor general
Modi offers prayers at Kedarnath, renews resolve to serve
Ranjit Kumar resigns as solicitor general
DMK chief Karunanidhi makes public appearance
Chidambaram slams EC for not announcing Guj poll schedule
Delhi fire dept gets over 200 calls on Diwali
8 killed as portion of TN transport corpn's building collapses
'You're my family': PM Modi celebrates Diwali with troops in J&K's Gurez
20 IAF jets to land on Agra-Lucknow Expressway on Oct 24
BJP: Some Mersal scenes show GST, PM Modi's Digital India in bad light
Fire breaks out at central Kolkata building, SBI office gutted
On Diwali, India will grant medical visa in all deserving case: Swaraj
ENTERTAINMENT NEWS
Alka Yagnik and Udit Narayan to get Lata Mangeshkar Award
 (Bhopal, Oct 21, 2017): Noted music composers Usha Khanna, Bappi Lahiri, Anu Malik and playba  
Playboy features first transgender as its playmate
Konkana, Radhika Apte support #MeToo campaign
'Padmavati' experience extremely exhausting: Deepika
INTERNATIONAL NEWS
US-backed forces hail 'historic victory' over Islamic State in Raqqa
 (Raqa, Oct 20, 2017):The Kurdish-led force that expelled the Islamic State group from Raqqa h
EXPAND Obama, Bush decry deep US divisions in Trump era
Angela Merkel calls for cut to Turkey EU funding
Barack Obama returns to the political arena
KERALA NEWS
Al Shifa hospital at Edappally to close down
 (Kochi, Oct 21, 2017, DG): Al Shifa hospital at Edappally is planning to down shutters follow
Private security for Dileep: Police suspect violation of bail conditions
One killed in Ponkunnam accident
Debate on development impossible in Kerala, says Kummanam
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