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What is gst rate on real estate ?

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Taxes
0 2022-05-11T10:08:19+00:00
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Hey, You must have seen on the news that taxpayers have to pay GST on the purchase of a property. You have to pay Goods and Services Tax when you buy a plot as well. These taxes are direct earnings for the government. The real estate GST rate fluctuates each year because of various factors. Keep reading to know more. What is GST rate on real estate ? There has been a major impact on the real estate market because of Covid. The sector slowed down and did not see an increase in demand for property in the year 2020-2021. To encourage people to buy flats and apartments. GST rate on real estate has been reduced for the year 2022. Experts think this will lower the overall impact on buyers’ pay-out by approximately  4%-6%. Take a look at the table below to know the GST  rate on property purchase.
Property type GST rate till March 2019 GST rate from April 2019
Affordable housing* 8% with ITC 1% without ITC
Non-affordable housing 12% with ITC 5% without ITC
In the year 2019, GST applicable was changed. Take a look at the table given below to see GST on purchase of property in the affordable housing segment.
Affordable housing GST on affordable housing before April 1, 2019 GST on affordable housing after April 1, 2019
Property cost per sq ft Rs 3,500 Rs 3,500
GST rate on flat purchase 8% 1%
GST Rs 280 Rs 35
ITC benefit for material cost of Rs 1,500 at 18% Rs 270 Not applicable
Total Rs 3,510 Rs 3,553
  GST on purchase of luxury property
Luxury housing Before April 1, 2019 After April 1, 2019
Property cost per sq ft Rs 7,000 Rs 7,000
GST rate on flat purchase 12% 5%
GST Rs 840 Rs 350
ITC benefit for material cost of Rs 13,000 at an average of 15% Rs 126 Not applicable
Total Rs 7,714 Rs 7,350
This is all from my end on the real estate GST rate. Need help with choosing the perfect property for you? Check out Nobroker Buyer Plans. Read more : How to Calculate GST on Sale of Land?    Do I Have to Pay GST on Land Purchase?    How to change proprietor name in GST?    

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