How To Choose Which Floor Is Best Fit For You

GST council decided to cut the impose tax on under construction housing projects. rate decreasing from 5% with special rate of interest of 1% to withdraw benefits of credit tax input . By Building materials and paints, sellers were putting the gains in their pocket.

How to pay GST at 1% to 5% –

  • It is acceptable as cash ledger account only.
  • The amount of input tax credit on construction of project which delivery date is on or after 01.04.2019. as per prescribed formula given, may be for payment according to GST liability.

GST rates for ongoing projects (under new GST scheme)

  • Residential Project (affordable)- 1% (effective GST rate with no ITC)
  • Residential Project (non-affordable)- 5% (effective GST rate with no ITC)
  • Commercial Projects -12% (with ITC)

GST rates for ongoing projects (exercised for old rates)

  • Residential Project (affordable)- 8% (effective GST rate with ITC)
  • Residential Project (non-affordable)- 12% (effective GST rate with ITC)
  • Commercial Projects -12% (with ITC)

*ITC means Input Tax Credit

GST rate on Affordable Housing Projects –

  • A residential house/ flat which has carpet area up to 968.75 Sq. Ft. The range of 45 lac in non-metropolitan cities, is as Affordable Housing project.
  • A residential house/ flat which has carpet area up to 645.85 Sq. Ft. The range of 45 lac in metropolitan cities, is as Affordable Housing project.

Ongoing Project-

  • Commencement certificate is on or before 31.03.2019
  • Completion certificate is not issued or first occupation not done before 31.03.2019
  • Flats/ units has been partly or wholly booked on or before 31.03.2019
  • The Construction of the project must be as started before 31.03.2019. If preparation of project done and building process of foundation started.

There were many taxes before GST implementation. such as VAT, Stamp Duty , on registration and service tax . Each of that has different rate with variation in rates from one state to another. The implementation of GST in Real Estate Industry has made vital role to make the tax more easy in India. It can be range from 5% to 18% with some key factors.

Joyville Phase 2 is the new exiting housing project of Shapoorji Pallonji at Gurgaon 102. It will come under the New GST scheme and only 5% tax will be on its non-affordable houses.

There are two important aspect of implementing GST

  • First aspect is GST on (goods) various construction material.
  • Second aspect is service of construction itself.

Both above aspects affects to final cost for owner and rate variation on different stage.