GST(Goods and Services Tax) Rate on Real Estate

GST Real Esate

The GST Council has reduced the GST rate for under construction flats and affordable housing from 12 % to 5% and 1 % respectively from 01/04/2019.  GST rate 1% applicable on affordable home and 5 % on other.

What is an affordable home under GST act?

GST Council decided two factors for the affordable home according to metropolitan and non- metropolitan cities/towns. In Residential Properties,   Affordable home will be a home of carpet area  60 sq. m. in metro cities and 90 sq. m. in Non-metro cities which have value up to 45 Lakh.

Property Type Property Status GST rate from 01/04/2019 ITC
Affordable home Under Construction 1% Not Applicable
Non-affordable Under Construction 5% Not Applicable

GST on commercial properties.

IN Commercial properties, GST divided into two segment.

  • On Shops (which comes under Residential project), 5% GST applicable.
  • On Showroom (Commercial project, 12% GST with 6% ITC(input tax credit).

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