new delhi your gst liability will only come down to 5 on the remaining instalments of your underconstruction apartment if your builder decides to move to the new mechanismunder the revised regime the gst council has lowered the levy from 12 to 5 and from 8 to 1 for affordable housing but taken away the benefit of tax credit on inputs such as cement paints and steel as builders were seen to be pocketing it and charging 12 flat gstread alsobuilder cant charge higher gst for location parkingthe authority on advance ruling in west bengal concluded that services such as preferential location and facilities like car parking in apartments should be treated as composite construction service and attract the same levy as construction the builders will now have to charge 5 gst on servicesbuilders to refund gst on cancellation of flats booked in fy19builders will have to refund gst paid by home buyers in case they cancel the flat booked in the last fiscal and will be allowed to avail credit adjustment for such refunds the tax department has said this clarification forms part of the faq released by the central board of indirect taxes andin a set of faqs the government has clarified that you can hope to move to a 5 or 1 rate for the remaining portion of the underconstruction flat so if you had paid 40 of the value of the flat up to march 31 and your builder decides to move to the new regime you can opt for the new rate but in case the builder sticks to the one with itc input tax credit make sure that the benefits of tax credit accrue which will mean a lower than the 12 ratethe government also said that a onetime option has been given to builders to move to the revamped structure but those who do not submit their option by friday will automatically move to the 5 rate without itc and 1 for affordable homesit has also reiterated that 80 of the value of goods and services have to be sourced from registered suppliers for calculating this threshold the value of services by way of grant of development rights long term lease of land floor space index or the value of electricity high speed diesel motor spirit and natural gas used in construction of residential apartments in a project shall be excluded the 16page faqs said