Extend the deadline for declaration of ongoing real estate projects for GST rates, demanded tax practitioners of the state. They have also asked apex body for Goods and Services Tax (GST) to allow manual filing since online utility is not available. The deadline for registration is expiring on May 10.
GST Council in March this year had announced 1 per cent GST for real estate projects under the affordable housing category and 5 per cent GST for rest of the real estate projects. For this, realtors need to register their projects with the GST Council by May 10. With just two days left, no online utility is available on the GST network.
"Tax Advocates Association of Gujarat has written a letter to GST Council, Commissioner of Central GST (CGST) and Commissioner of State GST (SGST) that since there is no way that the projects can be registered, deadline for application should be extended and tax authorities should also allow manual applications," said Sunil Keswani, secretary of TAAG.
There are two categories under affordable housing — those up to 60 square meters and those up to 90 square metres. They are charged 1 per cent GST without the tax credit. The rest are under general category and are charged 12 per cent GST without the tax credit.
Vijay Shah, MD of Vijay Shah Builders said that non-compliance in GST will also affect compliance in other aspects like Real Estate Regulation Act (RERA). "If there is a delay because of registration with GST, there would be a delay in the project, which will violate RERA guidelines and the realtor will have to pay penalty. Why would realtors pay for the fault of the government? If the government can integrate GST with income tax, why can't it integrate GST with RERA so that faults in GST does not attract penal actions in RERA," asked Shah.