Developer asked me to pay old GST rate (12%) where central government has been relaxation to new GST rate(5%) then I have addressed my concerns to them. They replied me with a attachment where given two options with heading 'Applicable law 1st April, 2019 onward:'
Option 1 : Choosing to levy @12% and claim credit for taxes paid on procurement of goods and services required for carrying out construction.
Option 2 : Choosing to levy @5% and credit for taxes paid on our procurement of goods and services required for carrying out construction would be denied.
I am not able to understand what to do. Shall I agree the old GST rate or can I take any legal action against developer.
Please suggest me.
Thanks in advanced for your support and clarification.
You may challenge demand of builder, if you feel it is illegal.
