NEW DELHI: In a respite for home buyers who have booked homes and made part payment, the government on Thursday clarified that the goods and services tax (GST) will actually reduce their tax outgo for payments made after July 1. "Construction of flats, complex, buildings will have a lower incidence of GST as compared to a plethora of central and state indirect taxes suffered by them under the existing regime," the ministry of finance said in a statement today.The government has also asked builders to not ask customers to pay higher tax rate on installments to be received after imposition of GST. "If any builder resorts to such practice, the same can be deemed to be profiteering under section 171 of GST law," the ministry added. Hinting also on a possible reduction in home prices after GST, the government said, "The builders are expected to pass on the benefits of lower tax burden.”

Source: Economic Times June 16, 2017 18:56 UTC