#RealtyNewsRoundUp: No GST On Buying Flats With Completion Certificate, Finance Ministry Clarifies

The finance ministry on December 8 clarified that buyers will not have to pay any tax for purchasing units that have already received a completion certificate under the new goods and services tax (GST) regime. However, the tax is applicable on sale of under-construction property or ready to move in flats where completion certificate is not issued at the time of sale. The ministry also asked real estate developers to pass on the benefits they get under the GST regime by slashing rates of property.

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Haryana’s Department of Town & Country Planning has decided to allow additional floor areas ratio to real estate developers by making an amended in its Integrated Licensing Policy, 2016. In a notification published on December 5, the DTCP said developers will be allowed 0.25 additional FAR on top of the 1.25 that is already allowed under the policy. This would mean realtors can add more units in their ongoing projects by purchasing the additional FAR that would cost them 5/7th of the corresponding rates notified for group housing colonies.

Meanwhile, nine commercial properties have been sealed by the Municipal Corporation of Gurugram on account of non-payment of property taxes while cases have been registered against 14 developers for alleged manipulation of revenue records to reduce stamp duty.

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The Brihanmumbai Municipal Corporation (BMC) is planning to do away with special no-objection certificates real estate developers have to apply for in order to provide certain amenities in their projects and include these in construction permits. At present, builders have to seek special NOCs from various departments for doing the digging work for laying out the water/sewage pipes and drains.

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The Supreme Court on December 7 ordered forensic audit of embattled real estate company Unitech, which has failed to deliver flats to thousands of homebuyers on time. Accounting firm Grant Thornton has been asked by the SC to carry out the audit and all its subsidiaries since January 2006. The auditor has been asked to provide a preliminary report in this regard by December 14.

Meanwhile, the economic offences wing of the Delhi Police has arrested managing directors of Noida-based realtor Jaipuria Buildcon for not handing over the projects despite receiving the entire sum of booking money.

Source: Media reports