GST Helpdesk

Previously considering service tax as well as VAT on flats purchased during construction, the tax was 14 per cent (effective rate considering all abatements under VAT and Service tax). Now it is 12 per cent and thus reduction on 2 per cent approximately. Further, the GST credit is available without major restrictions unlike the previous tax regime. Hence, the cost of flats had to come to down from a tax perspective. Fine print does not lie in GST but in stamp duty and registration fee particularly in Tamil Nadu, where the rate has gone up from 8 to 11 per cent.  In the guise of reducing guideline value, they have increased the overall cost by 3 per cent for honest tax payers.