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Latest GST changes on real estate constructions
Posted on: 26/Feb/2019 3:59:42 PM
As we had informed earlier, the Arun Jaitley announcement on GST towards real estate construction projects have seen a slash. So what is it exactly? There prevails commotion as to what kind of properties have this tax dip and what doesn’t. So, articulated below are the details of GST imposed on various types of construction projects:
No GST
For properties that are being constructed now and has not yet received occupancy certificate, it will not be liable to GST.
5% GST
Scenario 1 - When the property is under construction and has also obtained the occupancy certificate, and the value of the property is not lesser than or equal to Rs 45 lakh, then the construction would be liable for 5% GST.
Scenario 2 – When the property is under construction and has also obtained the occupancy certificate, and the value of the property is less than or equal to Rs 45 lakh, go for checking its geographic location. When such a property is located in metro cities like Chennai, Bengaluru, Mumbai, Delhi, Hyderabad or Kolkata, then go for checking out its carpet area. When the property stands true to the aforementioned criteria and has carpet area more than 90 sq.mt., then such a property will be liable to 5% GST.
1% GST - When the property is under construction and has also obtained the occupancy certificate, and the value of the property is less than or equal to Rs 45 lakh, go for checking its geographic location. When such a property is located in metro cities like Chennai, Bengaluru, Mumbai, Delhi, Hyderabad or Kolkata, then go for checking out its carpet area. When the property stands true to the aforementioned criteria and has carpet area of 60 sq.mt. or lesser than it, or when the carpet area is 90 sq.mt. or lesser than it, then such a property will be liable to 1% GST.
