A: Goods and Service Tax (GST) is a consumption based tax levied on goods and services. This tax will be substitute for all indirect tax levied by state and central government. i.e. VAT*, Service Tax, Cess etc.

A: 

A: The GST shall be applicable from 1st July 2017. 

A:  As already stated in the question no. 1, GST shall subsumed current tax as are under:

 i. Central indirect taxes and levies : Central Excise Duty, Additional Excise Duty, Service Tax, Additional Customs Duty, Special Additional Duty of Customs, Central surcharges and cess

ii. State Indirect taxes and levies   : VAT* / Sales tax, Entertainment tax, Central Sales tax, Octroi and Entry tax, Purchase tax, Luxury tax, State cesses and surcharges.

A: No. Unit holders buying property for their self-use or consumption are not required to get registration under GST.

A: We shall be charging GST as CGST and SGST for sale of under construction units.

A: Consolidated cheque can be paid by buyer for the tax demand raised.

A: The treatment under GST has been detailed below:

i. Early Payment Rebate (EPR) and OTPR : These are in nature of cash discount offered by Emaar to encourage timely payment of dues. Credit note shall be issued for the amount of the rebate.

ii.Compensation on delay on handover of possession : No GST payment shall be made by unit-holders.

A: GST shall be levied on DPC / DLI charges at 18%. Such GST to be deposited on basis of amount received from buyers. 

A: There is no GST benefit in paying installments in advance. In case of advances paid in the current period (prior to 01.07.17) for which the billing will happen under the GST regime, GST at the rate applicable shall be payable. However, the unit holder would get credit of the service tax already paid and this will reflect in the Demand/SOA.

This is as per section 142(11) (c) (where tax was paid on any supply both under the Value Added Tax Act and under Chapter V of the Finance Act, 1994, tax shall be leviable under this Act and the taxable person shall be entitled to take credit of value added tax or service tax paid under the existing law to the extent of supplies made after the appointed day and such credit shall be calculated in such manner as may be  prescribed.)It clearly states that if the supplies (Invoice) is made after the appointed date then the tax shall be leviable under this Act (GST Act). Hence pre-payment would have no impact on the taxability and unit holder would have to pay tax Under the GST as and when the invoice is issued. They would however, be eligible for credit of service tax paid on advance made before 1.07.2017.

A: The Company is awaiting the formulating of the relevant rules and shall pass on the benefit post the impact assessment.

A: Yes , at the same rate listed above.

A. Please click here