This has been announced by Supreme Court-appointed court receiver R Venkatramani, days after the state-owned construction company said that it will try to hand over 150-200 flats every month from August. Buyers, however, have argued they be charged GST instead, at the rate of 1-5% as applicable on real estate currently.
According to the announcement made on the court receiver’s website on August 8, built for communicating with the 44,000 buyers awaiting homes for over 10 years now, “No GST is applicable, however, service tax is applicable. For the computation of ST, the rate prevailing in 2014 is now applicable for all buyers. The rate of ST which prevailed at that time was 3.75% and for all purposes, 3.75% will be calculated for all outstanding dues. The ST will be paid separately from the outstanding dues into the UCO bank account.”
The buyers, however, have written to the court receiver, urging that they be charged the prevailing GST at the rate of 1-5% for flats in the affordable category. “We have written to the court receiver about this and we think buyers should pay what is existing at the time of payment. When the ST itself is non-existent, then why are we being asked to pay the same,” said Dipankar Kumar, an Amrapali buyer and member of Noida Extension Flat Owners Welfare Association (Nefowa).
“Most Amrapali flats would be in the category of 1% GST. Also, if the buyers pay service tax, where will this be deposited as the tax system has been abolished. Also those who are constructing the flats now are getting raw materials with an input cost of 18% GST. So, buyers too should be paying taxes at applicable GST rates,” said Indrish Gupta, another Amrapali buyer.
When contacted, officials at the court receiver’s office declined to comment on the issue. NBCC has asked Amrapali buyers to start paying up their dues in instalments from this month. The company has split the pending projects into three groups.