Pass on GST benefits to consumers or face music: Govt to businesses

The government on Thursday warned builders of stringent action for asking customers to make entire payment before July 1.

The government has warned the businesses of action if they do not pass the GST benefits to the consumers.

The action may include levying penalty as well as invoking anti-profiteering provisions so that the entities do not resort to hoarding money becasue of changes in tax structure in certain industries.

A three-stage process has been put in place to examine the complaints recieved in this matter. A complaint will first be verified by a standing committee of officers. If the complaint is found valid then it will be sent to director general of safeguards for the case to be investigated.

Based on the report by director general of safeguards, Anti-Profiteering Authority will decide on the case. The GST council has set a time limit of eight months for such complaints to be resolved.

The government on Thursday warned builders of stringent action for asking customers to make entire payment before July 1 and asked them to pass on the benefits of lower tax under the new regime by way of reduced prices/installments.

Construction of flats, complex, buildings will have a lower incidence of Goods and Services Tax (GST) as compared to a plethora of central and state indirect taxes suffered by them currently, the finance ministry said in a statement.

The tax department and states have received complaints that the people who have booked flats and made part payment "are being asked" to make entire payment before July 1, 2017 or to face higher tax incidence for payment made there after.

OneIndia News