Hi there,
GST has raised so many questions that it is very difficult to keep a track of all the rules and regulations pertaining to it. I understand that you have a confusion for GST on under construction property and when to pay it. Well, I think I finally have clarity on it. Here is what you need to know about GST for under construction property.
GST on under construction propertyYou must first know that GST on under construction property is applicable at a single rate of 12%. If the building has been issued a CC then no GST has to be paid.
When we have to pay GST for under construction property?The GST for under construction property is paid when you receive demand notes with GST at a decided timeline between you and the builder at each interval till the possession of the property.
How to calculate GST on under construction property?Suppose Ram buys an under construction residential property which doesn’t fall in the ambit of an affordable housing scheme worth Rs. 5000000 from a builder. The land value in that property is Rs.1000000. So the GST on construction would apply only on the remaining Rs. 4000000.
The GST on under construction property will be calculated as:
Rs. 4000000 x 5% = Rs. 200000
I hope now you know
when we have to pay GST for under construction property.
Read more: How to calculate GST on under construction property What is the GST rate for rent on commercial property
When we have to pay GST for under construction property?
Kishan
1991 Views
1
3 Year
2022-01-10T10:41:46+00:00 2023-10-18T17:09:28+00:00Comment
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