• GST rate for flat purchase under PMAY-CLSS

Hi All.

I'm in the process of purchasing a flat of 720sq.ft CARPET AREA in a metro city (Chennai) under the PMAY-CLSS scheme.

With respect to the carpet area, the flat purchase will incur 5% GST.

But, I could see in some websites that for all flat purchase under PMAY-CLSS scheme, the applicable GST rate will be 1%.

Can someone please clarify whether the applicable GST for me will be 1% or 5%.

Thanks in advance.
Asked 14 days ago in GST

Your loan would be under PMAY-CLSS scheme.

As far as GST is concerned the flat eligible for 1% GST are are:

  • A residential house/flat of carpet area of up to 90 sqm in non‑metropolitan cities/towns and 60 sqm in metropolitan cities having value up to Rs. 45 lacs (both for metropolitan and non‑metropolitan cities).
  • Metropolitan Cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR) with their geographical limits prescribed by Government.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement. You can even book phone consultation for further personal assistance.

Thank you.

Naman Maloo
CA, Jaipur
3703 Answers
40 Consultations

5.0 on 5.0

Hi

 

According to the government-determined definition, housing units worth up to Rs 45 lakhs qualify as affordable housing. However, the unit must also conform to certain measurements. A housing unit in a metropolitan city qualifies to be an affordable house, if it costs up to Rs 45 lakhs and measures up to 60 sq metres (carpet area). The Delhi-National Capital Region, Bengaluru, Chennai, Hyderabad, the Mumbai-Mumbai Metropolitan Region and Kolkata are categorised as metropolitan cities. A housing unit in any other city barring the ones mentioned above in India, qualify to be an affordable house, if it costs up to Rs 45 lakhs and has up to 90 sq metres of carpet area.

It would be 1%.

Karishma Chhajer
CA, Jodhpur
2288 Answers
15 Consultations

5.0 on 5.0

Hi,

GST of 5%/1% depends on the condition whether house falls under the definition of affordable housing or not.

A housing unit in a metropolitan city qualifies to be an affordable house, if it costs up to Rs. 45 lakhs and measures up to 60 sq metres (carpet area) which becomes 645 sq. ft. 

Now as per your query, it doesn't fall under affordable house and Hence, 5% GST would be applicable.

Also GST is only applicable on the purchase of the under constructed property and not on the completed flat.

 

Hope i am able to solve your query. 

Please do rate if you like the consultation.

For any further, Please contact me on the given number

Thanks & Best regards

CA Shubham Bansal

Shubham Bansal
CA, Amritsar
33 Answers

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA