The GST Council today (24-Feb-2019) has announced a rate cut in the goods and services tax (GST) charged on sales of residential properties under construction.
As per the latest decision, the new GST rate applicable for all housing projects will be 5%, down from the current 12%.
Whereas, the council also decided to lower the tax rate on affordable housing projects to 1% from 8 %.
However, in both cases, input tax credit (ITC) cannot be claimed.
What are considered as Affordable Housing Properties?
The GST council has also altered the definition of ‘affordable housing’ as below;
- Properties costing up to Rs 45 lakh will be considered as affordable.
- In metro cities, houses with a carpet area up to 60 sq mtr (645 Sq ft) will be classified under affordable housing.
- Metropolitan Cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR).
- In non-metro cities, houses with a carpet area of up to 90 sq mtr (968 Sq ft) will be classified under affordable housing.
Revised GST Rates on Real Estate Properties & Under Construction Flats
The following revised GST rates on new real-estate projects will be implemented from April 1, 2019. (New Property is the one where the construction begins after 31st March, 2019.)
Latest Update (19-March-2019) :
As per the latest update from the GST council, if a real-estate project has already been under-construction (or) where actual booking has been done before 31st March, 2019 then the builder has been given a one -time option to charge below GST rates;
- On non-affordable properties, a builder can levy old GST rate @ 12% (with Input Tax Credit) or new GST rate @ 5%.
- On affordable projects, a builder can levy old GST rate @ 8% (with ITR) or new revised GST rate @ 1%.
The option has to be exercised once within a prescribed time frame by the real estate builder and where the option is not exercised within the prescribed time limit, new GST rates shall apply.
Do note that the new GST rates are mandatory for Projects which commence on or after 1st April, 2019. The new GST rates are also applicable for on-going projects builders do not exercise their option by 20th May, 2019.
Applicability of GST on Real-estate
The GST Rates will be levied on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale. Kindly note that the GST will not be applicable in Re-sale transactions.
If you buy an under-construction property through Govt provided Credit Linked Savings Scheme then such property is considered as ‘Affordable housing’.
GST is exempted on Development Rights (Joint Development Agreement), Long Term lease, FSI etc.,
GST On Real-estate & Latest Updates :
- Builder can’t charge higher GST for services like PLC (Preferential Location), parking etc. These services should be treated as “composite construction service” and attract the same levy as construction. (Updated on 04-May-2019)
- Builders have to refund GST paid by Home buyers in case he/she cancels the Flat booked in the last fiscal (FY 2018-19). The Real-estate Developer shall be able to avail credit adjustment for such refunds. (Updated on : 08-May-2019)
- Home buyers will have to pay 12 % or 8% GST (the rates as existed prior to April 1, 2019 ) on balance amount due to the builder if the housing project has been granted completion certificate by March 31, 2019. (Updated on 15-May-2019)
- Flat owners will have to pay GST at 18 per cent if their monthly contribution to resident welfare association (RWA) exceeds Rs 7,500. As per the rules, RWAs are required to collect GST on monthly subscription/contribution charged from its members if such payment is more than Rs 7,500 per flat per month and the annual turnover of RWA by way of supply of services and goods exceeds Rs 20 lakhs. (updated on 23-July-2019)
- In case the charges exceed Rs 7,500 per month per member, the entire amount is taxable. For example, if the maintenance charges are Rs 9,000 per month per member, GST @18 per cent shall be payable on the entire amount of Rs 9,000 and not on (Rs 9,000-Rs 7,500) = Rs 1,500.
- If a person who owns two or more flats in the housing society or residential complex, the ceiling of Rs 7500 per month per member shall be applied separately for each residential apartment owned by him.
Continue reading :
- Checklist of Important Property Documents in India | Legal Checklist for Property Purchase
- Occupancy Certificate, Possession Certificate & Completion Certificate – Meaning & Importance
- How to calculate Holding Period & Capital Gains on sale of an Under-Construction property?
- Under Construction House : How to claim tax deduction on Home Loan Interest payments?
- What is GST (Goods & Services Tax) : Details & Benefits
- How Home Buyers can file complaints against Real estate Builders online? | RERA Act
(Post first published on 24-February-2019) (The above provided details are based on the limited available information, if required, this post will be edited/updated.)
Hi sir I have purchased a two bhk apartment in 2018 at that time there was a no issue regarding gst but now the builder is harassing me to pay gst and I have taken loan also under pmay scheme so kindly suggest me
Dear Mohammad,
As per the latest update from the GST council, if a real-estate project has already been under-construction (or) where actual booking has been done before 31st March, 2019 then the builder has been given a one -time option to charge below GST rates;
On non-affordable properties, a builder can levy old GST rate @ 12% (with Input Tax Credit) or new GST rate @ 5%.
On affordable projects, a builder can levy old GST rate @ 8% (with ITR) or new revised GST rate @ 1%.
You may kindly take help of a civil lawyer (or) can also check with other flat owners (how they are handling this situation).
hello Sreekanth,
Please confirm how much GST do i have to pay on my under construction property. 8 % or 12 %
My home loan sanction under CLSS MIG 1
MY HOME SIZE IS 125 SQ MTR
home value is 75 Lakh ( non affordable segment )
Sir I have purchased UNDER CONSTRUCTION flat Feb 18 and paid gst 12 p in each installment and 5 p from april 19.but builder is not passing ITC FROM FEB 18 TO MARCH19.WHAT IS ADVISE FOR ME.builder adopt 5 p gst from april 19.
Dear Mr Misra,
You may Fill ‘Anti-Profiteering’ Complaint against your builder. But before doing so, you may formally request him once again preferably through a written letter/email..
Hi, I have just booked a flat in New Town area Rajarhat with a reputed builder called Loharuka Group. According to their cost sheet, they are charging 5% GST for the base price of the flat and 18% for PLC, Floor escalation and even parking. There are not even giving any logical or documental evidence but just denying my claim. Please advice and also refer any documents/circular regarding this. I have provided them the AAR of west bengal also in this matter.
Dear Pratim,
Do note that the new GST rates are mandatory for Projects which commence on or after 1st April, 2019. The new GST rates are also applicable for on-going projects builders do not exercise their option by 20th May, 2019.
Kindly check if the above two conditions are applicable for your (Project) property?
Hi Sree,
I am going to book/register a MHADA winning flat in jully 2019 with some amount. Buildings are already under construction from last 3 years and will be completed in 2021. basic cost is rs. 5570000, So i am worried about how much GST i will have to pay.can you help
Dear Abhijit,
This property falls under ‘non-affordable’ housing category.
Kindly check if your builder (Authority) has opted for new GST rate from this FY or not?
Hi Abhijit,
Did you get the flat in Pimpri Waghire area?
I purchased home in may 2019 price around 7Lacs how much gst I have to paid and PMAY Benefit get in my home in village
Dear Jakasaniya,
Is this an independent house?
Hi Sreekanth ,
Can u pls explain if builder opts for 12% GST option incase of under construction property which commenced before 1st April , u have mentioned he has a option to opt for 12% with input credit …
My question is what is input credit & how it’s gonna benefit exiting customer ….does it mean input credit will be given to the customer ?? If yes How it’s calculated & passed to customer??will it reduce the actual tax amount ??
Dear Ramesh,
You may kindly go through below articles ;
* What is Input Credit under GST ? & How to claim it?
*What is Input Tax Credit (ITC)?
* Input Tax Credit under GST
* ITC under GST – explained with Examples!
Hi:
Seems need clarity on ITC. This happen to me. I have booked apartment( GST 12% applicable) in Jan’19 and made two payments for GST12% applicable. however after new rule my so called reputed builder (Godrej) has denied for 5% GST applicable.
As per him, if it opt for 5% GST then it will impact quality of constitution.
My question is IF they opt for 12% GST with ITC, how can I get the benefit being end user of paying GST. Can we exercise Anti-profiteering law if yes ..what is the way out?
Dear Amit,
If they opt for 12% then they have to pass on ITC to their coustomers.
Kindly go through this article : Builder pulled up for not passing GST gain to buyers
hi sreekanth
As i want to buy a flat in second hand which is in ready to move but its already registered from builder to one client,and the client wants to sale the same to me ,so is it necessary to pay GST for builder,can u please revert back.
Dear Satish..GST is not applicable in this case..
Dear Shree,
I have home loan, 7 year going to completed from taken it. My loan a/c is noting but OD account, i am thinking to close this a/c and the liquidity will be little lower but not so much.
As of now my two kids are small, still education not started, not other liability other than this.
My EMI is 30K (20K Int + 10K Prin), i think after close this 30K i can save pm and after few year think about second home and education exp.
Please advice should i close home a/c?
Thanks
Rutushar.
Dear Rutushar,
May I know the source for closing your home loan outstanding amount? Is it from your current accumulated savings?
What is your home loan tenure (term)?
Dear Sree,
Yes, there are some accumulated saving & some LIC are going to matured, the O/s amt is around 15-16 lac.
Total tenure of Loan is 25 year, out of 7 year is completed.
Dear Rutushar,
Considering your profile, you may opt for both the options – continue with your investments for your long-term goals and also part-pay your home loan (not in-full).
Related articles :
* Investing in Mutual Funds while paying Home Loan EMIs | Cost-Benefit Analysis
* List of Articles on the key Components of Personal Financial Planning
Thanks a lot Sree….
Hi Sree,
Hope you are doing well!
I am seeking a valuable response to my below queries,
I bought under construction flat of measuring Carpet area of 32.42 sqm in Mumbai and the Agreement value was 41 Lakhs and made two Initial part payment of 10 % each of agreement value with 12% GST in February 2019. After that builder raised the new demand letter for another part payment in March 2019 on 12% GST, But my payment went to the builder in April 2019 after the implementation of a new GST slab.
So my queries are as follow
1. On March 2019 part payment demand, which is paid by the bank in April 2019 – Will new GST rate applies or Old GST rate apply? When I asked builder you have charged the wrong GST rate because bank paid in April 2019 so new GST rate will be applicable then builder told me “No they have charged correct GST rate because we have raised the demand letter in March 2019.” Kindly give me clarity on that it is correct or wrong?
2. What will be GST slab applicable as it in under 45 Lakhs and the Carpet area is 32.42 sqm?
3. How can I avail ITC from the builder on my 20% Part payment on which I paid 12% GST?
4. How much maximum percentage of ITC can avail from the builder?
I would be grateful to you if I and get any supporting reference documents for all my queries.
Regards,
Abhishek Chaurasiya
Dear Abhishek,
As your project is an under-construction property, your builder has the option to opt for old/new rates by 20-may-2019. So, kindly check with them about their choice.
FYI – Home buyers will have to pay 12 % or 8% GST (the rates as existed prior to April 1, 2019 ) on balance amount due to the builder if the housing project has been granted completion certificate by March 31, 2019.
Its the builder(s) who can claim the ITC (if any) and not the buyers..
Hi Shree,
Thanks for your reply!
I had checked with builder currently he applied the new GST rate from 1 April 2019 i.e. 5 %.
Still, I am confused regarding for my first query,
If he is collecting 5% GST from buyers then My April 2019 payment GST would be 5% for my below query?
1. Builder raised the Demand in March but Payment is done by bank in April 2019 then the builder should revise the GST slab from 12 to 5 % because the payment made in April?
2. As per the government rule, ITC should pass on the buyer so how can I get the benefit?
Regards,
Abhishek Chaurasiya
Dear Abhishek,
1 – Kindly check with your builder..
2 – You may kindly go through this link (quora), regarding non-payment of ITR by the builder..
IF Mr.A has booked an under construction flat at total 50,00,000, and paid as advance Rs.20,00,000 and paid GST advance also, but question is after completion certificate arrives and at the time of making purchase agreement after Completion certi. GST on balance amount of 30,00,000 is also have to pay or not??
Dear Harshit,
The GST Rates will be levied on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale.
So, answer is NO.
Dear sir
My affordable dues on 24 april 2019 but builder demand as per old GST rates that is 8%.
Pls send me govt. Effective new GST rate approval letter as per govt.that is 1%.
Dear Vicky,
As per the latest update from the GST council, if a real-estate project has already been under-construction (or) where actual booking has been done before 31st March, 2019 then the builder has been given a one -time option to charge below GST rates;
On non-affordable properties, a builder can levy old GST rate @ 12% (with Input Tax Credit) or new GST rate @ 5%.
On affordable projects, a builder can levy old GST rate @ 8% (with ITR) or new revised GST rate @ 1%.
The option has to be exercised once within a prescribed time frame by the real estate builder and where the option is not exercised within the prescribed time limit, new GST rates shall apply.
That is Really very important information to be shared to the people as this will reduce the overall cost of buying a house fro the home buyer
We have booked a flat in March 19 by paying 50000/-. Receipt is issued with 12% gst. Now agreement will be done in April 19. It comes under affordable housing .
In this how much gst rate will be applicable on 50000/- paid in March 19 and what rate on further amount to be paid in April onwards?
Dear Alps,
For payments made till 31 Mar 2019, the effective GST rate is 8% on Affordable housing properties.
After Mar 2019, your builder can opt for 8% or 1%. Kindly check with your builder..
Thanks Mr. Reddy, builder has charged 12% on amount paid in March 19. And he has quoted 1% from April onwards. Is it ok?
Hi, Just need to confirm that i have booked a flat in Feb 2019, by giving only the token amount. So i am doing the registration in this month i:e April 2019, So how much % of GST, Stamp Duty , Regsitration will be charged ? please confirm
possession of flat will get by Oct-2019
Dear Shrinivas,
As per the latest update from the GST council, if a real-estate project has already been under-construction (or) where actual booking has been done before 31st March, 2019 then the builder has been given a one -time option to charge below GST rates;
On non-affordable properties, a builder can levy old GST rate @ 12% (with Input Tax Credit) or new GST rate @ 5%.
On affordable projects, a builder can levy old GST rate @ 8% (with ITR) or new revised GST rate @ 1%.
The option has to be exercised once within a prescribed time frame (by May 2019) by the real estate builder and where the option is not exercised within the prescribed time limit, new GST rates shall apply.
So, kindly check with your builder.
The Builder is saying 8% GST will apply, they have said After April whichever project is in under construction there the GST is 1%..is it correct ?
Dear Shrinivas ..Yes, you builder can be correct…(subject to type of housing project..)
Hi Sir,
I have purchased 2 attached 1 BHK under construction flats having carpet area 500sqft each so is it coming under affordable or no affordable category?
I have paid 8% GST for previous slabs so is 3% refundable for the paid slabs after April 2019??
Dear Roshan,
I dont think the taxes that are already paid are refundable.
Individually if the cost is less than Rs 45 lakh then properties can be considered under Affordable category.
ONGOING PROJECT BEFORE 1ST APRIL WHAT IS THE GST RATE OFFORDABLE HOUSE
Dear Dharnidhar,
On affordable projects, a builder can levy old GST rate @ 8% (with ITR) or new revised GST rate @ 1%, if the project is under-construction before 31st Mar, 2019.
Hey Sreekanth,
I have purchased a flat for 80 Lac (Premium/Normal Housing Project) in Bangalore in August 2018 when the applicable GST was 12%;
At the time of booking, Occupancy Certificate was not present. Builder got OC in December 2018.
At the time of booking i Paid 10 Lac + 12% GST extra;
In Feb 2019, I have paid 20 Lac + 12% GST extra;
Now i have taken loan for remaining 50 Lac and its sanctioned;
Builder is asking full amount for registration before 31st march with GST 12%.
My question is –
1) If i get my loan disburse for the remaining 50 Lac after 1st April 2019; Will builder give me concession on the GST
2) If I get it disbursed before March 31; will i get benefit later from builder
3) Is there any provision that i would get GST benefit for the previous amount which i have already paid
4) I spoke to builder and he said that the concession rates are not applicable on your project; What should i do ?
Please help
Vijay
Also I have paid the TDS on the full actual value already as told to me by builder
Dear Vijay,
On non-affordable under-construction properties, a builder can levy old GST rate @ 12% (with Input Tax Credit) or new GST rate @ 5% after April 1st, 2019.
So if builder is asking 12% GST for the remaining payment after 1st April 2019. Than we have to pay.
Yes dear vijay..
Dear Sir,
Please let us clear what GST came for the under construction flat as less than 900sqft area and below 45lk value in non metro from April 2019 as my payment 75% gone in 12% gst rate. Please show on some light sir.
Dear Indrajeet,
Latest Update (19-March-2019) :
As per the latest update from the GST council, if a real-estate project has already been under-construction (or) where actual booking has been done before 31st March, 2019 then the builder has been given a one -time option to charge below GST rates;
On non-affordable properties, a builder can levy old GST rate @ 12% (with Input Tax Credit) or new GST rate @ 5%.
On affordable projects, a builder can levy old GST rate @ 8% (with ITR) or new revised GST rate @ 1%.
The option has to be exercised once within a prescribed time frame by the real estate builder and where the option is not exercised within the prescribed time limit, new GST rates shall apply.
Dear Sir,
So now my question is that 90sqm carpet area with 45lkh in non metro was not applicable in affordable housing before and its upgraded recently and now its coming from 1st April 2019 because before this limit was 60 sqm. If i was in 90 sqm with 44 lakh in non metro under construction flat then what will be my GST rate from 1st april, before i was paying 12 %. What will be rate applicable because i was not part of before in affordable zone but now i am in. So what rate builder will be charged ?
– Is it 12% as he taken before from April but now i am affordable category. Then what will be impact on me in affordable category?
– is it 8% ?
– is it 1% as i am coming in recent announcement in affordable segment with parameter but builder can charge me 12% as liberty has given to builder for under construction?
My main point is only for what they will pay GST those are coming recent affordable zone in under construction but before they was not in .
Thanks
Dear Indrajeet,
I believe that on affordable projects, a builder can levy old GST rate @ 8% (with ITR) or new revised GST rate @ 1%, if the project is under-construction before 31st Mar, 2019.
You may re-check with your builder and/or with CA as well.
But old gst was 8 percent for 60 sqm area only sir. Now what was below 90 sqm before
SIR, I HAVE BOKING FLAT UNDER CONSTRUCTION JAN 2019 WITH BOOKING AMOUNT FLAT VALUE 18 LAKH BUT I HAVE NOT DONE REGISTRATION YET CAN I AVAIL GST NEW RATE AFTER REGISTRATION 1.04.2019 HOW MANY % GST PAID AFTER 1.04.2019 PLEASE SUGGEST
Dear Nilesh,
If Occupancy certificate has not been issue and if the flat is still under construction then any payments paid by you after Mar 31 2019 attract the above new revised rates.
If your property falls under ‘affordable housing’ category then GST rate would be @ 1%.
Hey Sreekanth,
I have booked a flat with Godrej. Sale value 53 L. I have given 10 % to the builder with 12% GST.
I have to submit the 10% more based on construction completion. I was informed that Invoice will be raised by builder on 26th March i.e. their internal process. I have to submit the 10% amount by 13th April.
I was informed that i have to pay at 12% GST as invoice is raised in march even though i do the transaction in April.
Kindly advice.
Dear Abhishek,
If the due date as per the invoice is after March 31 then on such payments GST @ 1 or 5% can be applicable. Kindly re-check with your builder..
Dear Sir,
Please know us hows the builder paid GST
1- Suppose that if he made 100 units and only sold 50 units till in last two years then hows ,he will pay GST after completion of project. If sold units payments paid slab wise gst ?
2- If suppose that builder made his property in last two years in 12% rate but he is getting completion certificate in may 2019 then what rates GST he will pay for unsold units or he should be compulsory pay at the time of constrution as paid like other sold units.
3- Hows builder pay GST for sold and unsold units in the current scenario of GST.
Thanks,
Dear Indrajeet,
GST is not applicable on ready-to-move (RTM) properties for which completion certificates have been issued.
Its the buyers who have to pay GST and not the builder.
Mr Sreekanth Reddy, thank you for your portal for guiding on GST.
I booked a house in a construction society in Vizag. Completed all the works and am ready to make the final payment for the occupancy certificate. will there be any difference in GST if i make my payment after 1st of April.
The builder says that the new GST is not applicable on already constructed houses. How true is his statement.
Dear Nagendhra,
GST is not applicable on ready-to-move (RTM) properties for which completion certificates have been issued.
Hello Sir,
I have done my flat aggreement in Jan 2019.
The builder has given a payment order in the februrary month, but I have not paid them because NOC incomplete. If I paid them in April, then how much would I have to pay GST?
Dear Vaibhav,
5% or 1% depending the type of your property (affordable / non-affordable segment)..
Thanks,
The carpet area is 474 Sq burst. And the price is 43 Lakhs 90 thousand. So what segment it comes in.
And
The builder has told me that NOC has come today, if I make the payment after 1st April 2019 then how much tax will I have to pay?
Dear Vaibhav,
Its Affordable housing property. GST @ 1% is applicable on payments made after April 1, 2019.
Dear Sir,
Please suggest me
1-What was the maximum size in affordable flat area at non metro before this 24th FEB 2019 announcement as 90 sqm and 45 lakh in non metro FROM APRIL 2019 and what was gst RATE before?
2- What was the definition Changed as per Area And amount for GST after 25th Jan, 2018?
3- I was booked a flat in 44 lakh and 810 carpet area in non metro agreement value in 30th jan. 2018 and Builder is charging me 12% GST from there. Is 810 carpet area including parking space was not in the affordable housing definition till date?
4- When visited his office yesterday then he told me only 600SQM area was in the affordable housing zone and that was only qualified 8% GST from Jan. 2018 not mine because my carpet area was 810 sqm . is it true?
Please show some lights on the issues.
Thanks.
Dear Indrajeet,
1 & 2 – Effective GST Rate on affordable house was 12% till Jan 2018, 8% from Jan 2018 till March 2019 and going to be 1% from April 2019.
There has been only one definition for affordable housing ie 60 sqmt.
From April 1, 2019, there will be twin-definition, for metros and non-metros.
3 & 4 – The carpet area is more than 60 sq mt (645 sq ft), so it was not an affordable segment property for now.
So, on non-affordable property the current GST rate is 12% (with Input Tax Credit) till Mar 31, 2019.
As your property will fall under the new definition above 90 sq mt, from April 1, 2019, new GST rate on payments after April 2019 will be levided. (Let’s wait for GST council mar 10 meeting to get more clarity..)
Thanks !!
Dear Sir, I got my flat in MHADA LOTTERY 2018 , I had paid 10% amount to builder and 8% gst on it , I did flat agreement in February 2019, I have not paid remaining amount, flat possession date is May 2020, builder saying me that I have to pay remaining amount with 8% gst, but as per new gst rule it will be only 1% please suggest me what to do
Dear Ganesh,
If you pay the remaining amount after April 1, 2019 then new GST rates would be applicable.
I have booked a flat on oct’2018. Now it is under construction only. And i have paid 90% of the flat value under home loan with GST 12%. Total flat value is 34lakhs. And still i have not done registration. Flat handing over date will be oct’2019.Can i avail the revised GST rate benefits.
Dear Sathiyamoorthy,
If you make any payments after April 1, 2019, the new GST rates would be applicable.
Let’s wait for more clarity on payments already for an under-construction property… (But, I dont think the new rates retrospective in nature..)
Can you please clarify The Definition of ‘affordable housing”!!
Is it satisfy any of the 2 clauses or both!! Like <45 Lakhs and 60/90 sq Mars!!!
Dear Srinivas,
Yes, has to meet both the conditions..
Hi,
I booked flat in August 2018, flat is attraction 8% GST as it is affordable. already 83% disbursement through bank given to builder.
Will the new already paid amound GST will get refunded ?
Dear Atul,
Kindly note that revised rates are applicable on payments made from April 1, 2019. So, I dont think there will be any refund as such..
Thanks.
I read somewhere as follow,
With regard to those properties where construction work has already begun, Jaitley said a committee of officers will draft the transition rules and frame guidelines.
“The fitment committee and law committee by March 10 will draft those guidelines and immediately place before the GST Council which will meet via video conference so that ministers do not have to travel to Delhi in election period,” he said.
To ensure that the real estate sector does not go back to cash economy and to fix the accountability of back supply chain, a very high percentage of goods will have to be procured from GST registered dealer, Jaitley added.
May be I need to wait till 10 March….
Dear Atul,
My interpretation is they are referring to changed definition of Affordable housing and Properties that are already under-construction..
Anyways, let’s wait for couple of weeks to have a clear picture..
sir i am selling my flat in Nashik for 2150000 which includes stamp city and registration. how much do I payforthe above
can I avail reduced GDT
Dear Sandhya,
GST is not applicable on re-sale of flats. (I am assuming that the flat has Occupancy certificate).
Sir I made 10% as booking advance for a flat under construction a month ago with an understanding of 49 lakhs for salable area by 12% GST. IT is yet going to be registered.
Kindly clarify whether I can avail the 5% GST now announced if I register the flat after 1.4.2029. property is in Chennai metro city
Whether the builderwill allow to avail the reduced GST ?
Dear Kalaimani,
It depends on your agreement with your builder regarding the Payment schedule.
If you pay the amount after 1-4-2019, you can avail the benefit of reduced GST rate. You may kindly check/negotiate with your builder..
Dear sir,
I have booked a CLLSS under construction flat in non metro Ahmadabad on the price of 44lakh of 810 sqft carpet area in October 2017. I have paid 35 lakh from the bank including 20 % down payment and that time Gst was 12 %. Now hows i can get benefit of 1% gst. i have also received PMAY grant also. Now builder will be ready for this schemes. please guide. even my flat is booked in 20:80 schemes.
thanks,
Dear Indrajeet,
Kindly note that revised rates are applicable on payments made after April 1, 2019.
Please clarify me as per area and amount i was falling in 8% rate and why is charging us 12 %. So i want to know this affordable definition is came now or it was presented before (45 lakh and 90 SQM areain non metro) .Please clear because i made my registration on 30th Jan 2018. So he should charge us 8 % because till date he didn’t provide any GST separate receipt to Us. Please Guide.
Dear Indrajeet,
If your builder has been deducting GST and not issuing any genuine Invoice/Bill with GSTIN then they may be cheating you.. Follow it up with them..
Effective GST Rate on affordable house was 12% till Jan 2018, 8% from Jan 2018 till March 2019 and going to be 1% from April 2019..
Related article :
Fake GST Bills? | How to verify GSTIN number & GST Slab Rates of Goods & Services?
thanks alot.