GST Department Issues Compliance Notices to Noida Project Developers
The Goods and Services Tax (GST) Department in Gautam Buddh Nagar has taken action by issuing notices to 43 project developers in Noida and Greater Noida, demanding the payment of Rs 580 crore related to the lease premium on their projects.
Officials confirmed this information on Saturday. Chandni Singh, the Additional Commissioner of the GST Department in Noida, stated that these notices were dispatched over the past month, specifically in December. “This is an ongoing proceeding,” she noted, emphasizing the continuous nature of the assessments being undertaken. Developers served with these notices are granted a month to respond. Singh warned that failure to pay the required taxes within the stipulated timeframe would result in fines.
Officials stress the necessity for project developers to comply with GST regulations concerning both lease premiums and lease rents. While many builders have been adhering to an 18% tax on lease rent, compliance regarding lease premiums has been less consistent. “We remain in active communication with numerous developers who are currently reviewing their obligations.
They will submit their responses based on their evaluations of the tax liabilities, which is a standard practice,” Singh explained.
These tax assessments are based on the financial year 2018-19, but Singh indicated that the final amount could vary depending on the evidence provided by the developers. “Initially, we’ve calculated this liability, and we’ve allowed them a month to submit their replies. After this period, we will proceed to the next steps,” she added.
As of now, approximately Rs 30 crore has already been recovered from the developers. Some have requested extensions for their responses. “If these taxes remain unpaid after this period, we will impose significant penalties,” Singh warned.
The Additional Commissioner further clarified that the obligations for these taxes rest firmly with the developers. Many are already compliant, while others are expected to adhere following the receipt of notices. “This is fundamentally about ensuring compliance. Some builders are fulfilling their obligations, while others need prompting,” Singh stated.
The department continues its efforts to reach additional developers, acknowledging that discrepancies can arise from projects not being updated on the Real Estate Regulatory Authority (RERA) websites.
The article on India’s plans to simplify income tax filing might be helpful to you.
