Who will pay GST on under construction flat?

Home buyers in India have to pay a Goods and Services Tax (GST) on the purchase of under-construction properties like flats and apartments at the rate of 1\% for affordable housing and 5\% for non-affordable housing. In real estate, the GST is also applicable on purchase of developable plots.

Can we claim GST on flat purchase?

No, if under construction property is purchased then GST is leviable and it can not be claimed back. However if you purchase the property after being completed then there is no GST.

Is GST compulsory for flat purchase?

GST Rate on Flat Purchase 2021 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). Residential properties included in the affordable housing segment will be subject to a 1\% GST without an ITC.

How much tax does a builder pay?

So Service Tax @ 15\% on 25\% of the Total Purchase price is levied on under Construction Property. In other words Service Tax @ 3.75\% (25\% of 15\%) is levied on the total price paid for the purchase of an under construction property.

Can builders claim ITC?

ITC for the construction of an immovable property cannot be availed, except where the input service is used for further work contract services. For example, XYZ Contractors are constructing an immovable property. They cannot claim any ITC on the works contract.

Can under construction flat be resold?

It is not advisable at all. It can land you in legal / financial trouble. While buying Resale Under Construction Property, you should always enter into a tri-party agreement which is also known as Transfer Deed or Assignment Deed. This deed is signed by the buyer, the seller and the builder.

Is there any GST on the resale of a completed property?

GST on completed property and ready to move in flats- there is no GST. CLSS scheme- 8\% GST rate on Real Estate.There would be no GST on the resale of flats after the introduction of GST. Property with completion certificate issued and sale amount is partly paid before and

What is the GST rate for under construction flats in 2019?

However, effective from 1st April 2019, this is slashed to 5\% WITHOUT Input Tax Credit (ITC). The actual GST rate for under construction flats, properties or commercial properties is 18\%. However, 1/3 of 18\% is deemed as the value of land or undivided share of land supplied to the buyer of the property.

Can I Sell my Flat without registering with RERA?

As per Section 3 of the act “No person shall sell or book the flat, make any purchase in any manner, any plot, apartment or building in any real estate project without registering the project with RERA,”

What is the GST rate for purchase of property under CLSs?

Effective from 25th January 2018 (Refer this NOTIFICATION), if you purchased the property under the Credit-Linked Subsidy Scheme (CLSS), then the applicable GST rate will be 12\%. The effective rate of 8\% after deducting one-third of the amount charged for the house towards the cost of land.