Now the government has given another relief to the homebuyers by ordering the builders to return the additional GST taken from them. The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has recently ordered this to builders community.
But on the contradictory, it has ruled down the issues that the homebuyers can claim the input tax credit. This was said on the behalf of a particular issue by two homebuyers who wanted to get back their additional GST paid.
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The under-construction project got late and the GST was charged at 12% instead of 5%. This, in turn, made the builder collect the higher 12% GST from the homebuyers and now the regulatory body has said that the excess 7% must be returned back to the homebuyer.
The builders asked that the regulator should dismiss the plea of return of GST and instead offered to pay rent.
The regulator order said, “In an emailed communication, the developer assured that the benefit due to ITC will be passed on to the customers, which will be done at the stage of handing over the flat.”
Finally, the regulator asked the developers to pay INR 8150 per month rent to the homebuyers for the delay in the possession, while also directing them to pay INR 1.25 lakh as compensation.
