What is the GST rate on purchase of flat?

The rate of tax is 18\% subject to a tax amount which is limited to 1\% or 5\% of the value of the apartment depending upon whether the TDR/FSI is used for an affordable residential apartment or other than an affordable residential apartment.

How is GST calculated for apartments?

GST Rate on Flat Purchase 2021 Residential properties included in the affordable housing segment will be subject to a 1\% GST without an ITC. On residential properties that are not part of the affordable housing segment, GST charges on a flat purchase will be paid at 5\% without an input tax credit (ITC).

Which tax is applicable before GST?

Differences between GST and Previous Tax Structure

Parameter	VAT	GST
Central Sales Tax	Under VAT, CST is charged at a concessional rate of 2\% so far as inter-state transfers are concerned against C-Forms. The full rate applicable otherwise ranges from 5\% to 14.5\%.	Under GST, the Integrated GST subsumes CST.

Is GST applicable on completed flats?

Since resale properties are immovable and do not fall under the definition of Goods under GST, there is no impact. It simply means that there would be no GST on the resale of flats after the introduction of GST.

How do you calculate GST on a flat in 2019?

For flats rated more than Rs 45 lakh, the new GST rate applicable from April 1, 2019, stands at 5\%, against 12\% currently. The GST Council also reduced GST rates on affordable housing to 1\%, from the current 8\%. In both cases, the builders will not be eligible to claim an input tax credit in the new structure.

Is GST applicable on building rent?

GST on Rent is taxed @ 18\% of the Rent paid. The landlord will be exempt from taking registration under GST if the aggregate turnover of supply of goods or services or both during the year is less than Rs. 20 lakhs during the financial year.

How much sale is exempt from GST?

Businesses and individuals are exempt from GST if their annual aggregate turnover is less than a specific amount. At the time of GST implementation in July 2017, businesses/individuals with annual aggregate turnover of less than Rs. 20 lakhs were allowed GST exemption.

Which of the following tax rates is not applicable under GST?

Goods and services are divided into five different tax slabs for collection of tax: 0\%, 5\%, 12\%, 18\% and 28\%. However, petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead are taxed separately by the individual state governments, as per the previous tax system.

What are the indirect taxes before GST?

Now, all these taxes are paid as one tax called the GST. However, there are some indirect taxes which have not been brought under the radar of GST. Customs duty, security transaction tax, building and welfare cess and electricity duty levied by local authorities and state governments are some of them.

What is the GST rate for under-construction flats?

Update on February 24, 2019: To boost demand in the real estate sector, the GST Council, on February 24, 2019, slashed tax rates for under-construction flats to 5 per cent and affordable homes to 1 per cent, effective April 1, 2019.

What is the GST rate for affordable housing in India?

Currently, the Goods and Services Tax (GST) is levied at 12 per cent with input tax credit (ITC) on payments made for under-construction property or ready-to-move-in flats, where the completion certificate is not issued at the time of sale. For affordable housing units, the existing tax rate is eight per cent.

What are the recent changes in GST applicable to builders and developers?

Author compiles recent changes in GST applicable wef 01.04.2019 related to builders and developers- It explains changes Where GST OF 1\%/5\% Is Opted For Ongoing Project, Where Existing 8\% Is Continued With ITC, Impact on New Projects and amendment in rules regarding Input Tax Credit in summaried form. 1. 2.

Are you eligible for the new GST rate of 1\%?

Ans: You are eligible for new GST rate of 1\%, subject to the condition that the developer-promoter with whom you have booked the house has not exercised option to pay tax on construction of apartments at the old rate of 8\%. Q 3. I am planning to purchase an apartment in a newly launched project.