TaxTMI 
TaxTMI 
A builder has opted for 12% by filing annexure 4. He now wants to shift to 5%, and come under the new scheme. How can he opt for the same??
CAN BUILDER/DEVELOPER SHIFT TO 5% FROM 12%
19 Jun 2021 
2 Replies 
1608 Views Asked by
GST rate election cannot be switched after filing Annexure IV, except where a project is newly commencing at transition.
A builder who filed an Annexure IV opting for the higher GST rate cannot subsequently change that election to the reduced rate because the Annexure IV declaration is final; only projects that qualify as newly commenced at the transition point may be governed by the reduced rate, and attempting to reclassify an existing election risks a show-cause notice and litigation exposure. (AI Summary)
A builder who filed an Annexure IV opting for the higher GST rate cannot subsequently change that election to the reduced rate because the Annexure IV declaration is final; only projects that qualify as newly commenced at the transition point may be governed by the reduced rate, and attempting to reclassify an existing election risks a show-cause notice and litigation exposure. (AI Summary)