Is GST Applicable For Ready To Move In Flats?

I came across this query multiple times: Is GST applicable on ready to move flats? In India, Goods and Services Tax or GST does not apply to ready-to-move-in flats. It is if the competent authority has issued the Completion Certificate (CC) or Occupancy Certificate (OC) before the purchase. 

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1. As per GST laws, GST is levied only on the supply of goods and services, and on under-construction properties. However, once a property is completed and ready for possession, it is no longer treated as a supply.

2. Under-construction property: Attracts 5% GST (without Input Tax Credit) for affordable housing and 5% (non-affordable) from April 1, 2019. For projects opting for the old GST regime, it was 12% with ITC.

3. Ready-to-move-in flat (with CC/OC): No GST is applicable.

For more details, you can read my previous answers. I hope you understand when is GST applicable for ready to move in flats.

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Also read:

What is the GST rate on ready to move in projects? 

Do you want to know is there a GST on ready to move property? I’ll help you out.

The Goods and Services Tax (GST) is not applicable to the sale of ready-to-move-in flats. It is applicable to under-construction properties and not on the sale of completed or ready-to-move-in properties.

Further adding to

GST on ready to move in property,

when you purchase a constructed property and are ready for occupancy, it is treated as a transaction of immovable property. However, the sale of ready-to-move-in flats are subject to other taxes, such as stamp duty and registration charges.

Remember, to consult with a tax or legal professional to make sure you have the up-to-date information about the taxation of real estate transactions.

This is all about

ready to move flats GST rate.

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I am a real estate investment lawyer and I am often asked

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is GST applicable for ready to move in flats.

When purchasing under-construction homes in India, such as flats, apartments, and bungalows, I always suggest my friends and relatives pay a Goods and Services Tax (GST) at a rate of 1% for affordable homes and 5% for non-affordable properties. The GST is also applied to the acquisition of developable plots in real estate. Read my answer to learn more about this.

Is GST applicable on ready to move flats?

In India, those purchasing apartments and flats in ongoing construction projects would be required to pay GST on their purchases starting in 2022. Keep in mind that if you purchase a home in an already finished project, GST on a flat acquisition is not payable. A project is considered to be finished legally after it has been granted a completion certificate by an appropriate body.

GST rate on flat purchase 2022

Notably, builders were granted a one-time option to select in between the old and the new rate by May 20, 2019, for all ongoing projects, even though the new tax rate minus input tax credit (ITC) will be applicable to all new projects. Only projects that were uncompleted as of March 31, 2019, qualified for this offer.

Is there GST on ready to move flats?

GST is only applicable to apartments that are still being built; it does not apply to ready-to-move-in apartments.

It is significant to highlight that the real estate industry is not included in the scope of the GST. Under "work contracts," the tax rate that applies to a property building is assessed. For this reason, a developer is not permitted to add GST to the price of residences that are ready for occupancy. A property is labelled as ready-to-move-in upon completion and after acquiring the occupancy certificate, and is no longer covered by a work contract. In other words, the GST would be applicable to the sale of properties that are still under construction and are awaiting OCs. It also begs to be mentioned here that under the previous administration, buyers of ready-to-move properties also had to pay service tax.

I hope now you understand i

s GST applicable for ready to move in flats or not.