{"id":28577,"date":"2022-06-23T16:13:37","date_gmt":"2022-06-23T10:43:37","guid":{"rendered":"https:\/\/plyinsight.com\/?p=28577"},"modified":"2022-06-23T16:13:37","modified_gmt":"2022-06-23T10:43:37","slug":"burden-of-gst-will-be-reduced-for-under-construction-flat-buyers","status":"publish","type":"post","link":"https:\/\/plyinsight.com\/hi\/burden-of-gst-will-be-reduced-for-under-construction-flat-buyers\/","title":{"rendered":"Burden of GST will be reduced for under construction flat buyers."},"content":{"rendered":"

The Gujarat High Court’s decision to deduct the actual value of land before levying GST on under-construction flats is expected to reduce the tax burden on home buyers. Presently, while levying GST on sale of under-construction flats and residential units, the tax is calculated on the full value of the flat or unit (including the value of the underlying land). After ad-hoc deduction of one-third of the cost of the flat, it is taxed. The actual cost of the land is not affected in this process.<\/strong><\/p>\n

Experts said that the application for deduction of one-third of the actual value of the land in urban areas or metropolitan flats is arbitrary in its nature as it does not take into account the area, size and location of the land. The High Court in its judgment in Munjal Manishbhai Bhatt vs Union of India has also included deduction of one-third of the cost of the land at the time of purchase of the flat. This will reduce the GST levied on the property to be purchased.<\/p>\n

The court, in its judgment, has held that the mandatory deduction of one-third of the cost of the land is not applicable in cases where the value of the land can be clearly ascertained.<\/p>\n

\n

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The Gujarat High Court’s decision to deduct the actual value of land before levying GST on under-construction flats is expected to reduce the tax burden on home buyers. Presently, while levying GST on sale of under-construction flats and residential units, the tax is calculated on the full value of the flat or unit (including the […]<\/p>","protected":false},"author":1,"featured_media":13165,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2877],"tags":[1208,2325,250,1205,2306,756,2925],"class_list":["post-28577","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-june-articles-2022","tag-court","tag-flat","tag-gst","tag-house","tag-land","tag-real-estate","tag-under-construction-home"],"yoast_head":"\nBurden of GST will be reduced for under construction flat buyers. - PLY INSIGHT<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/plyinsight.com\/hi\/burden-of-gst-will-be-reduced-for-under-construction-flat-buyers\/\" \/>\n<meta property=\"og:locale\" content=\"hi_IN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Burden of GST will be reduced for under construction flat buyers. - PLY INSIGHT\" \/>\n<meta property=\"og:description\" content=\"The Gujarat High Court’s decision to deduct the actual value of land before levying GST on under-construction flats is expected to reduce the tax burden on home buyers. 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