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).