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C.B.I. & C. Instruction F. No. 354/52/2018-TRU

Authenticated document to be relied upon by the developer to charge concessional rate of GST on CLSS housing.- As per the detailed Operational Guidelines available on Ministry of Housing and Urban Affairs website to avail the CLSS benefit, the interest subsidy will be credited to the loan account of beneficiaries through Primary Lending Institutions (PLIs), such as, banks, etc. resulting in reduced effective housing loan and Equated Monthly Installments (EMI). According to the said guidelines, PLIs such as banks, housing finance corporations, NBFCs etc. are required to register with Central Nodal Agencies (CNAs). The CNAs are required to release subsidy under the scheme to the PLIs in respect of loans sanctioned by them to borrower/ beneficiaries. The PLIs are required to provide each borrower/beneficiary a statement, which will make him/her understand the amount given as subsidy, how the subsidy has been adjusted and the impact of the subsidy on his/her monthly installments (EMI). PLIs will also provide the utilization/end use certificate and also a certificate in relation to the physical progress of the construction of the housing unit financed under the scheme to the CNAs on a quarterly basis. Thus PLIs are closely involved in the implementation of the CLSS Scheme. MHUA may prescribe a certificate by PLIs on the basis of which the builder may charge reduced rate of GST on houses constructed/acquired under CLSS. The certificate may be addressed to the beneficiary with a copy to the builder, certifying that the borrower is a beneficiary of the CLSS. The certificate may contain relevant details such as the name, address, account number of the borrower, complete address and other details of the housing unit for which the CLSS benefit has been granted, Aadhar number. The details of CLSS beneficiaries and the housing units for which CLSS benefit has been sanctioned are published quarterly/monthly on the websites of MHUA/CNAs and the builders charge concessional rate of GST based on the same.

 The administrative Ministry may be requested to prescribe a certificate by PLIs (which will be based on the interest subsidy they credit to the beneficiaries’ account) to the beneficiary & Builder/developer based on which the builder would be eligible to pay concessional GST of 8% for CLSS housing [S. No 3(iv)(db) of notification No. 11/2017-CTR].

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