Real estate players in the State have sought an extension of the time frame, by two months without any interest, for filing GST their returns, citing the current full lockdown implemented in Chennai and a few other districts.
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The government has fixed June 30 as the last date, but real estate developers want time until the end of August.
For residential projects started after April 1, 2019, the builder has to mandatorily charge customers a concessional rate of 5% or 1% (affordable residential apartments). This is without the input tax benefit. The developer has to make sure that 80% of all inputs and services were purchased from registered dealers. If not, the developer would have to pay tax on the shortfall value.
“We wish to submit that currently Tamil Nadu is one amongst the worst affected due to the pandemic. The Government of Tamil Nadu has announced a rigorous lockdown from June 19 to June 30, which is the cut-off date for filing returns,” CREDAI-Tamil Nadu, which represents over 350 developers across the State said in its letter to Union Finance Minister Nirmala Sitharaman.
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The industry body also pointed out that with banks and offices closed in Chennai and other districts, it would be extremely difficult for its members to file the returns within the stipulated time frame.
“With the intense lockdown in place, it would be very difficult. The government should focus on bringing things back to normal, rather than asking for compliance now. All deadlines need to be extended given the current difficult situation. Once things get back to normal, compliance would be automatic,” Padam Dugar, vice chairman and MD, Dugar housing Ltd., said.
K. Vaitheeswaran, advocate and tax consultant said that the real estate industry is already in trouble and would find it difficult to comply with the deadlines and would need a relaxations in norms.