Practical issues in reversal of Input Tax Credit for developers opting for New Scheme of Taxation from April 2019

The real estate sector is one of the most important pillars of the Indian economy. It contributes about 6-8% to India’s gross domestic product (GDP). Owing to a slowdown in the sector, the GST Council, through Notification No. 03/2019 – CT(R) dated 29th March 2019, slashed tax rates for under-construction flats to 5 per cent and for affordable homes to 1 per cent, effective April 1, 2019 to boost…