Completion Certificate requirement to hit real estate sales – analyst
The recent announcement of the Union Finance Ministry that GST exemption is available only for properties with completion certificate is likely to hit real estate developers, a prominent consultancy firm has said. The ministry said that buyers have to pay…

The recent announcement of the Union Finance Ministry that GST exemption is available only for properties with completion certificate is likely to hit real estate developers, a prominent consultancy firm has said.

The ministry said that buyers have to pay Goods & Services Tax on any new flat that did not come with a completion certificate.

A completion certificate is issued by local government bodies after inspectors are satisfied that the builder has stuck strictly to the building plans submitted to them.

In practice, most builders do not bother with the completion certificate either because they have made substantial deviations from the approved building plan, or because they fear that inspectors will reject their applications on flimsy grounds in anticipation of illegal gratification.

Moreover, completion certificates are not required for the sale and transfer of the property to the buyer, or for subsequent resale by the buyer.

However, with the finance ministry setting the cat among the pigeons with its GST clarification, builders will either have to get completion certificates or adjust their prices to account for the 12% GST.

Under Indian laws, all incomplete properties are subject to GST, while completed projects, including resales, are not.

Pune-based Anarock Consultants estimates that about 14% of the 6.9 lakh unsold residential properties in India’s top seven cities are technically ready-to-move-in.

“With this announcement, developers are now left with no choice but to absorb the GST charges in ready-to-move projects that have not been given completion certificates,” said Anuj Puri, chairman of Anarock Consultants.

(ends)

Related Articles

Related

Fargo Craigs List . Chat with singles

Meeting women in Fargo is really quite effortless. There are plenty of numerous areas you could go to meet very hot women, cougars, as well as alluring university girls. However, you do not need to waste your precious time just hanging out at the wrong places. Under...

read more

Milf Connections – Try Casual Dating

When people think of seniors, dating is growing rapidly not identified the first things that come to concentration. But if quantity of senior dating sites on the internet is any indication, it seems one isn't too old for romantic movie. Many seniors use online these...

read more

Oversupply of housing stocks a nightmare

If there is one factor that impedes the realty sector in India, it is the oversupply of residential properties. Says a report by India Infoline. While Ahmedabad and Hyderabad have a relatively comfortable inventory situation, major markets such as Mumbai, Gurugram,...

read more

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Share This