GST Rate applicable on construction of residential apartments
GST Rate on Flat Purchase:- With effect from 01st April, 2019, effective GST Rate applicable on construction of residential apartments by promoters in a real estate project are as under:
| Description | Effective GST rate (after deduction of value of land) |
| Construction of affordable residential apartments | 1% without ITC (Input Tax Credit) on total consideration. |
| Construction of residential apartments other than affordable residential apartments | 5% without ITC (Input Tax Credit) on total consideration. |
The above rates are effective from 01st April, 2019 and are applicable to construction of residential apartments in a project which commences on or after 01st April, 2019 as well as in on-going projects.
However, in case of on-going project, the promoter has an option to pay GST at the old rates, i.e. at the effective GST rate of 8% on affordable residential apartments and effective GST rate of 12% on other than affordable residential apartments and, consequently, to avail permissible credit of inputs taxes; in such cases the promoter is also expected to pass the benefit of the credit availed by him to 2 the buyers.
GST Rate on commercial property
Residential apartments Mean
A Residential Apartment has separate living and Sleeping areas in addition to the Kitchen and Bathroom while a Studio has only a separate Bathroom and normally the kitchen too is part of the living cum sleeping area, though some times it is given separately.