GST came into implementation in the year 2017 and since then there have been many revisions in the bill. The initial drafts were on a higher side when it came to real estate but the laws have been modified which has brought along significant changes. Talking about GST may need us to look into a few facts and then we can address how to calculate GST on flat purchase. Let’s start!
What is application of GST in real estate?
Before divulging into how to calculate GST on flat purchase 2021, let us look at some important points for GST in real estate:
GST is not payable if you have purchased a plot
GST is not payable if you have purchased a ready to move in property
You have to pay GST at the time of house registration along with stamp duties and other charges
GST is applicable on bank services when applying for home loan
How to calculate GST on Flat purchase 2021?
GST applicable on flat purchase in 2021 is 1% without Income Tax Credit for affordable housing while 5% without income tax credit for non-affordable housing. This rate came into application after April 2019 before that it was 8% and 12% without ITC respectively.
According to the GST rules, affordable housing is a housing worth upto Rs. 45 lakhs of up to 60 sq meters in carpet area in metro cities. Those in non-metro cities can be 90 sq meters in area.
Did you know?
Real estate developers and builders have been coming up with offers of GST free deals for home buying in order to boost sales during COVID.
Anyway, keeping the tax percentage in mind you can finally know how to calculate GST on flat purchase 2021.
How to calculate GST on flat purchase 2021?
Kirti
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2021-08-18T14:54:41+00:00 2021-08-25T10:24:28+00:00Comment
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