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How do you calculate GST on under construction flat 2020?
Example: How to calculate GST on under-construction flat Suppose that an under-construction property worth Rs 100 is sold by a builder to a buyer. To calculate the GST on building, Rs 33 will be counted out as the land value and the GST on construction would apply only on the remaining Rs 77.
What is GST rate for civil contractor?
GST Rate on Works Contract
| Description | HSN Code | GST rate |
|---|---|---|
| Construction services as works contract for a building project – affordable housing | 9954 | 12\% |
| Works contract mostly involving earth work to government | 9954 | 5\% |
| Oil exploration works contract (construction) | 9954 | 12\% |
Is GST applicable on resale of under construction property?
Answer ( 1 ) As per the latest GST tax structure, any residential project that has obtained a completion certificate, or any ready-to-move-in property can’t be classified as a service. This is why the GST rate is not applicable in such cases. So, in the case of resale of such properties, there will be no GST levied.
How do I calculate GST percentage?
GST Calculation Formula:
- Add GST: GST Amount = (Original Cost x GST\%)/100. Net Price = Original Cost + GST Amount.
- Remove GST: GST Amount = Original Cost – [Original Cost x {100/(100+GST\%)}] Net Price = Original Cost – GST Amount.
Can contractors charge GST?
Contractors, by contrast, must generally pay their own income tax, and have to register for and pay GST (if they earn over $75,000 annually from their business).
Is GST applicable on resale flat without OC?
GST is applicable on supply of goods or services made for a consideration in the course or furtherance of business. Therefore transfer of any personal asset is outside the ambit of GST. Hence, you will not be liable to pay GST on sale of the under constructed flat.
What is the GST rate for under-construction houses?
On 1st July 2017, the GST law comes into force across the country. The Goods and Services Tax (GST) Council in the 34th meeting has reduced the GST rate on 19th March 2019 on under-construction houses. For flats rated more than Rs 45 lakh, the new GST rate applicable from April 1, 2019, stands at 5\%, against 12\% currently.
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.
How will GST affect the value of land?
The value of land is included in the amount charged from the service recipient.” These will be taxed at 12 percent with full input tax credit. What this means is that from July 1, GST would be applicable on under construction properties at the rate of 12 percent but not on completed, ready-to-move-in apartments.
What is the new GST rate for flats over 45 lakh?
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.