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GST may increase price of flats nearing completion

It has been learnt that customers willing to buy a nearly-completed house/flat will have to pay 12 per cent service tax on the entire amount, which is almost 7 per cent higher than the previous rate of 4.5 per cent, reports The Times of India.

In addition, if customers are paying for their house in instalments, they too, will have to dole out paying up to 12 per cent service tax from July 1 onwards.

Sources from the retail marker and estimates given by builders suggest that there is almost a 7.5 per cent increase in such taxation after the GST regime comes into effect, as they will not be able to claim any credit for the taxes paid on inputs bought before July 1, says the report.

Source: Times Now