Works Contract for construction of Flats, Complex — Builders to pass on GST benefit to buyer otherwise anti-profiteering provisions of Section 171 of GST Act to apply

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.....E. & C. and States have received several complaints that in view of the works contract service tax rate under GST at 12% in respect of under construction flats, complex etc., the people who have booked flats and made part payment are being asked to make entire payment before 1st July, 2017 or to face higher tax incidence for payment made after 1st July, 2017. This is against the GST law. The issu....

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....incidence of Central Excise duty, VAT, Entry Tax, etc. on construction material is also currently borne by the builders, which they pass on to the customers as part of the price charged from them. This is not visible to the customer as it forms a part of the cost of the flat. 4. The current headline rate of service tax on construction of flats, residences, offices etc. is 4.5%. Over and above thi....