Summary:
HYDERABAD: Most infrastructure companies and builders are failing to pass the Input Tax Credit (ITC) availed by them to the buyers after the completion of the projects. However, ITC is available on this and the weighted average of ITC incidence is approximately 8 per cent to10 per cent. GST is applicable on sale of under construction property or ready to move-in flats where completion certificate has not been issued at the time of sale. According to GST officials city-based Praneeth Group has stood as an example by directly passing on input tax credit availed to the buyers after the completion of the projects.“After registration and obtaining occupancy certificate, we calculated the GST collected and amounts received and also calculated the input tax credit availed. In some cases, they are collecting less GST around 8 to 9 per cent..