GST rate wef 1.4.2019

[hubert fernandes]

With regard to the recent notification ie 3/2019 dated 29.3.19 (central tax rate) please advice us as whether on new projects commencing after 01.04.2019 the Builder can levy GST at 9% as per old rate and Avail ITC credit vis a vis Rule 42 as amended via notification 16/2019 dated 29.03.2019 ? OR whether Notification 3/2019 dated 29.3.19 prescribes a mandatory rate of adapting 3.75% with no input tax credit.

Please advise us on the basis of Notification 3/2019 dated 29.03.2019 read with Rule 42 as amended

 

AI Summary

GST for New Construction Post-April 1, 2019: Notification 3/2019 Sets 3.75% Rate Without ITC A query was raised regarding the applicable GST rate for new construction projects commencing after April 1, 2019, in light of Notification 3/2019. The question was whether builders could continue to levy a 9% GST rate with input tax credit (ITC) or if they must adopt a 3.75% rate without ITC. Two responses clarified that Notification 3/2019 mandates a 3.75% GST rate without ITC for such projects. The explanation provided in the notification specifies that the previous 9% rate is not applicable, and new entries replace it, effectively setting the rate at 1% or 5% considering land value adjustments.