The Goods and Services Tax Department of Gautam Buddh Nagar has asked 43 project developers of Noida and Greater Noida to submit tax worth Rs 580 crore on the lease premium of their projects, officials said on Saturday.
“The notices were issued on different dates over the past month, that is in December, to all the project developers. This is an ongoing proceeding,” said Chandni Singh, Additional Commissioner, GST Department, Noida.
Singh said that those project developers who have been served the notice were given a month’s time to file their replies, and would be levied fine if the taxes are not paid within the deadline.
According to officials, it is important for the project developers to pay GST on lease premium and lease rent. Most of the builders submit 18 per cent tax on lease rent but not on lease premium.
“We are in touch with a lot of developers. They are assessing and are going to submit replies based on their assessment of what the liability should be, which is a common thing. Sometimes we do not have all the details so the tax liability that we calculate is based on the information available through various sources,” the GST Additional Commissioner told The Indian Express.
She said that the taxes have been assessed from the financial year of 2018-19. “However, this amount can change based on the evidence submitted by the developers. But roughly in our calculation this is the liability and we have given them a month’s time to file their replies after which further proceedings will be initiated,” Singh said.
The officer said that around Rs 30 crore has been recovered from the project developers by now, while some developers have asked for some time. “After that, if the taxes are not paid we will impose heavy penalties on them” said Singh.
Singh said that this is a liability that is squarely fixed on the developers and many developers also are already submitting this tax. “It is a matter of ensuring compliance. Some builders have done it and some have not and those who have not will now do it based on the notices. We are still working on it and are expecting more project developers to be brought on our list. Certain projects are not updated on the RERA’s websites due to which also there are certain discrepancies,” added Singh.
Source from: https://indianexpress.com/article/cities/delhi/noida-developers-lease-premium-gst-taxes-9759844/
