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 rate applicability changed: substituted rate entries now govern construction supplies and bar input tax credit.
The substituted central tax entries introduced by the 2019 notification prevent application of prior rate entries for construction supplies specifically covered by new entries; consequently the substituted rates govern tax treatment and disallow input tax credit where the explanatory clause and amended valuation and credit rule apply, and earlier rate options are not available for projects commencing after the effective date.