Realty cos must pay GST on shortfall in input procurement by June 30: Govt

Any shortfall in the procurement would be subject to GST to be paid by real estate developers at the rate of 18% on supplies used as inputs or input services and 28% for cement

Real estate companies that opted for lower GST rates of 1 per cent and 5 per cent from April 1, 2019, but could not procure 80 per cent of the total supplies from registered dealers, will have to pay tax on the shortfall in such procurement by June 30.

The GST Council had allowed real estate players to shift to 5 per cent GST rate for residential units and 1 per cent for affordable housing without the benefit of input tax credit (ITC) from April 1, 2019.

However, they were mandated to procure at least 80 per cent of the