How to calculate gst on under-construction property with examples
- how gst is calculated on flats
- what is the gst percentage on flats
- what is the gst on flats
- is gst applicable on completed flats
Gst on flats below 45 lakhs...
Gst on flats below 50 lakhs
GST on Flat Purchase: A Simple Guide for First-Time Buyers
GST Rates on Flat Purchase
The GST rates for flat purchases depend on the type of project and its completion status:
⇒ Under Construction Flats:
GST applies to the builder's construction cost if you’re purchasing a flat in a building still under construction.
Currently:
- 5% GST is charged on residential properties without any input tax credit (ITC).
- 1% GST applies to affordable residences, which involve possessions priced below Rs. 45 lakhs and accompanying a carpet area of up to 60 square meters (in metro cities) or 90 square meters (in non-metro cities).
This is important when looking for GST on flat purchases below 45 lakhs.
⇒ Completed Flats:
If you’re buying a completed or ready-to-move-in flat, GST doesn’t apply because the flat is no longer under construction.
Consider Reading: Tax Benefits for Luxury Homes in Bangalore to Know
What is Input Tax Credit (ITC)?
A major advantage of GST is the Input Tax Credit (ITC).
This allows builders and developers to repay the taxes they paid on things like
- how to calculate gst on under construction flats 2021
- how is gst calculated under construction flat