8% GST for under construction apt

Hi,

- What is the area of your house?. 

Thanks

Dear Sir,

Hope you are doing well !!

Please share the booking date of apartment and area of apartment so we can advise you properly.

GST rate would be 12% of total value or 18% of 2/3 value. No benefit of affordable housing scheme would be available.

GST is levied at 12% on payments made for under-construction property or ready-to-move-in flats (18% GST less abatement of one-third towards the value of land) where completion certificate has not been issued at the time of sale.

However, GST is not levied on buyers of real estate properties for which completion certificate has been issued as they are subjected to stamp duty as land is also part of the transaction.

It is not covered under affordable housing scheme.

Hello,

Your apartment doesn't fulfil the condition to be eligible for the affordable housing project.

GST Rate would be 12% of the Total Value or 18% of the 2/3rd Value of the apartment.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

It will be either 8% of the overall cost or 12% of the 2/3rd of overall cost.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Hello Sir,

In this case GST would be payable at the rate of 18% on 2/3rd of the amount of property as remaining 1/3rd value is deemed value of Land on which GST is not payable .

Effective rate of GST is 12% with full input tax credit (ITC).

Further,the Council adopted a twin approach to define affordable housing. Accordingly, the term ‘Affordable Housing’ is defined on the basis of: (i) Carpet Area and (ii) Cost of Under – Construction Property. As per the carpet area approach, a residential house or flat would be taken as an affordable house if it has (a) a carpet area of 90 sqm in non-metropolitan cities/towns and (b) 60 sqm in metropolitan cities. Alternatively, a residential house/flat would come under affordable housing if its value is up to Rs 45 lakhs. This is both for metropolitan and non – metropolitan cities.

Your apartment is not satisfy the above conditions thus it is not covered under affordable housing.

Hi

GST rate will be 12% of total cost or 18%*2/3 of cost.

 Its not covered under affordable housing.

Hope it helps