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Thursday
April 2018
5:17 AM IST
News Headlines
Supreme Court judges urge CJI to hold full court on issues plaguing judiciary        Macron urges US to help reinvent multilateralism        Scandal-plagued Madrid leader steps down        MS Dhoni, Ambati Rayudu bury RCB as CSK chase down 206 to win        Gautam Gambhir steps down as Delhi Daredevils captain, Shreyas Iyer to lead        Prices of energy commodities set to rise by 20 pc this year: World Bank        Parmanu– The Story of Pokhran to Release on 25th May, 2018        Asaram case: Rape victim's father happy to get justice        States like UP, Bihar keeping India backward: NITI Aayog CEO Amitabh Kant        Engine of Chennai-bound train derails, no casualties        Asaram found guilty of rape, two co-accused convicted        Watch Video: Thrissur Pooram 2018 off to an amazing start        Mysterious deaths in Pinarayi: Soumya confesses to murder of her children, parents        What led to currency deficiency in India? Facts you must know / Video        Trump admin toughens H1-B visa procedure        Thrissur Pooram 2018: Muthukuda preparations in full swing / Video        Aseemanand's confession to police not voluntary: NIA court        Security personnel injured in encounter        Terrorism an enemy of basic human rights: Swaraj at SCO Foreign Ministers' meet        Sania to become mother in October        
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National News
Finance Ministry to HUPA: Engage realtors to pass GST benefit to buyers
 
(New Delhi, June 18,2017):After complaints surfaced of real estate developers asking for a higher rate of taxation of 12 per cent, against 4.5 per cent currently, after the goods and services tax (GST) rollout from July 1 from homebuyers who have booked flats and made partial payments, the finance ministry has asked the housing and urban poverty alleviation (HUPA) ministry to sensitise states and the real estate regulator to hold consultations with developers. The ministry wants developers to pass on benefits of input tax credit received by them on construction to homebuyers.

When asked on this issue, Finance Minister Arun Jaitley said “this is wrong” and real estate developers should pass on the benefits of input tax credit to buyers or else they would have to face action under anti-profiteering rules.

Revenue secretary Hasmukh Adhia has written to HUPA secretary, asking for sensitising all the states as well as the regulator under the Real Estate (Regulation and Development) Act, 2016 (RERA). “We have requested the HUPA secretary to hold meetings with real estate developers associations and make them understand,” Adhia told reporters here.

Construction of flats, complex, buildings will attract a 12 per cent GST compared to about 12.5 per cent excise duty at present and VAT of around 12.5-14.5 per cent levied by states.

Jaitley said the real estate builder will enjoy the benefit of input credit, which will be deducted from tax liability. “The lowered tax liability should lead to price reduction. The price reduction has to be passed on to the customer,” Jaitley said.

Asked if the anti-profiteering rules will apply if the home builder fails to pass on benefit, the minister said, “Anti-profiteering rules can apply. But we want to use the anti-profiteering rule as a deterrent. I hope we are not compelled to use it.”

The GST Council in its Sunday meeting cleared the anti-profiteering rules. As per the rules, if the Directorate General of Safeguards (DGS) after investigation establishes anti-profiteering, then the taxpayer would be directed to reduce price or return the amount equivalent to the amount not passed to the recipient by way of commensurate reduction in prices. Where the consumer cannot be identified, the recovered amount shall be deposited in the Consumer Welfare Fund as provided under Section 57 of the Central GST (CGST) and State GST (SGST) Acts, a senior government official said.

Also, as per the norms, the anti-profiteering provision will have a sunset date of two years.

A five-member anti-profiteering authority will be set up to decide on levying penalty if businesses do not pass on the benefit of price reduction to consumers under GST. The authority, to be headed by a retired secretary-level officer, can take suo motu action, besides acting on complaints of profiteering, the official said. A search-cum-selection committee will be set up for finalising the members of the anti-profiteering authority. Officials said it is likely to take about two months to finalise the members. Besides the Chairman, the four other members of the authority will be joint secretary-level officers who have been commissioners in central excise and service tax either at the Centre or states.

As per the structure, the complaints of profiteering would first come to the Standing Committee comprising tax officials from states and the Centre. It would forward the complaint to the Directorate of Safeguards (DGS) for investigation, which is likely to take about 2-3 months to complete the inquiry. On completion of investigation, the report would be submitted to the anti-profiteering authority which would decide on the penalty.

Section 171 of the Central GST Act provides that any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit will be passed on to the recipient by way of commensurate reduction in prices.


Prices of energy commodities set to rise by 20 pc this year: World Bank
Asaram case: Rape victim's father happy to get justice
States like UP, Bihar keeping India backward: NITI Aayog CEO Amitabh Kant
Engine of Chennai-bound train derails, no casualties
Aseemanand's confession to police not voluntary: NIA court
Security personnel injured in encounter
Terrorism an enemy of basic human rights: Swaraj at SCO Foreign Ministers' meet
PM Modi can’t win trust of Dalits, Rahul Gandhi says
Swamy hails VP's decision rejecting impeachment notice
Woman arrested for killing newborn daughter
24 injured in bus accident in UP
BJP may rope in Swami Aseemanand to work in West Bengal
SC website down amidst fears of hacking
L-G approves proposal to compensate consumers for unscheduled power cuts in Delhi
Manmohan Singh on Kathua, Unnao rape cases: ‘PM Narendra Modi should follow own advice to me, speak more often’
Kathua rape ‘barbaric’, says President Kovind
BJP ministers in J&K government asked to resign, to be replaced with new faces
Pakistan violates ceasefire in J-K's Rajouri
Punjabi singer shot at in Mohali
Woman raped by 3 men in UP
ENTERTAINMENT NEWS
Parmanu– The Story of Pokhran to Release on 25th May, 2018
 (Apr 25, 2018): Parmanu- The Story of Pokhran, an edge-of-the-seat thriller that will make ev  
I'm my own worst critic: Benedict Cumberbatch
Women being vocal is still new to the world: Priyanka Chopra
Shooting of 'Student of the Year 2' begins in Dehradun
INTERNATIONAL NEWS
Macron urges US to help reinvent multilateralism
 (Washington, Apr 25, 2018):French President Emmanuel Macron received a warm, three-minute sta
Scandal-plagued Madrid leader steps down
Trump admin toughens H1-B visa procedure
Armenian Prime Minister resigns amid protests
KERALA NEWS
Watch Video: Thrissur Pooram 2018 off to an amazing start
 (Thrissur, Apr 25, 2018, DG): Hordes of devotees thronged the famous Vadakkunathan temple in
Mysterious deaths in Pinarayi: Soumya confesses to murder of her children, parents
Thrissur Pooram 2018: Muthukuda preparations in full swing / Video
Varappuzha custody death: Chennithala launches hunger strike for CBI probe
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