Buying A Property? Know The GST Rates First
1.0 GST Rate On Real Estate
1.1 Real estate sector will invite GST at the rate of 12 per cent with full input tax credit. According to the schedule of GST rates for services, as approved by the council, real estate sector will comprise “construction of a complex, building, civil structure or a part thereof, intended for sale to a buyer, wholly or partly. The value of land is included in the amount charged from the service recipient.” These will be charged @ 12 per cent with full input tax credit. In other words, it means all under-construction properties will invite a GST of 12 percent.
1.2 GST On Under-construction Flats, Properties Or Commercial Properties: In this category, the actual GST rate is 18 percent. But one-third of this 18 percent is deemed as the value of land or undivided share of land supplied to the buyer of the property. Hence, GST rate lowers down to 12 percent on under-construction flats, properties or commercial properties with full input tax credit.
2.0 GST will not be applicable for ready-to-move-in properties.
3.0 There are various stages for under-construction properties and GST will be dependent on it.
3.1 When You Have Bought a Property After The Completion Certificate Was Issued To The Builder. In such a situation, GST will not be applicable as it is considered a ready-to-move-in property and there is no transfer or supply of goods and services.
3.2 Payment Made To The Builder In Part Or In Full Before The Roll Out Of GST Regime
Whether you paid in part or in full, if the payment is made before the rollout of GST regime, then it will not invite any GST tax. However, keep in mind that you will be charged applicable service tax rate of 4.5 percent.
4.0 GST On Resale Properties Or Flats
As they are considered ready-to-move-in properties, they will not invite GST taxation.
5.0 GST On Houses Purchased Under CLSS
The Credit-Linked Subsidy Scheme (CLSS) is meant to provide affordable houses to the lower and weaker sections of the society. The GST rates on such houses will be effectively 8 percent and not 12 percent as one-third will be deduction towards the cost of the land. more
1.1 Real estate sector will invite GST at the rate of 12 per cent with full input tax credit. According to the schedule of GST rates for services, as approved by the council, real estate sector will comprise “construction of a complex, building, civil structure or a part thereof, intended for sale to a buyer, wholly or partly. The value of land is included in the amount charged from the service recipient.” These will be charged @ 12 per cent with full input tax credit. In other words, it means all under-construction properties will invite a GST of 12 percent.
1.2 GST On Under-construction Flats, Properties Or Commercial Properties: In this category, the actual GST rate is 18 percent. But one-third of this 18 percent is deemed as the value of land or undivided share of land supplied to the buyer of the property. Hence, GST rate lowers down to 12 percent on under-construction flats, properties or commercial properties with full input tax credit.
2.0 GST will not be applicable for ready-to-move-in properties.
3.0 There are various stages for under-construction properties and GST will be dependent on it.
3.1 When You Have Bought a Property After The Completion Certificate Was Issued To The Builder. In such a situation, GST will not be applicable as it is considered a ready-to-move-in property and there is no transfer or supply of goods and services.
3.2 Payment Made To The Builder In Part Or In Full Before The Roll Out Of GST Regime
Whether you paid in part or in full, if the payment is made before the rollout of GST regime, then it will not invite any GST tax. However, keep in mind that you will be charged applicable service tax rate of 4.5 percent.
4.0 GST On Resale Properties Or Flats
As they are considered ready-to-move-in properties, they will not invite GST taxation.
5.0 GST On Houses Purchased Under CLSS
The Credit-Linked Subsidy Scheme (CLSS) is meant to provide affordable houses to the lower and weaker sections of the society. The GST rates on such houses will be effectively 8 percent and not 12 percent as one-third will be deduction towards the cost of the land. more
Viewed by 929
View all 6 comments Below 6 comments
Thanks a lot Mr. Pande for the most useful information. On another point, can we at Local Circles make it happen that GST (service tax for services like medical insurance policy, tax to chartered accountants, etc.) be 10% instead of 18% which is exhorbitant. more
Feb 17
How GST is applicable on a rented property big or small. Who is legally bond to pay the GST. If the GST collector is an individual without GST registration, how he pay the Govt. dues. more
Feb 17
A small clarification needed on the Samadhan Scheme 105/2018 notification by TN Govt, does this apply to land purchased in 2013-2014 and documents issued way back. more
Feb 17
Dear Sir , Due some technical fault I am not in a position to send my reply since a month  or so . Sorry for the inconvenience  . Sent from Yahoo Mail on Android On Fri, Feb 16, 2018 at 4:22 PM, MOHIT PANDE wrote: more
Feb 16
