GST on buying under construction builder floor

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Ashish Agarwal (Querist)
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04 May 2023 I am in the process of buying a under construction builder floor in Delhi. The builder is saying we have to pay 18% GST. Is the rate 18% ? Plus he is saying that builders can't claim any ITC under the GST act ? Is this true ? Please provide your insight. Thank you

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 May 2023 In India, buyers of under-construction flats, apartments, and bungalows pay 1% GST for affordable housing and 5% GST (No ITC) for non-affordable housing.

Ashish Agarwal

Ashish Agarwal (Querist)
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04 May 2023 Thank you sir.
I just saw that for the SAC code 995411 with description : Construction services of single dwelling or multi dwelling or multi-storied residential building, , the GST rate is 18%.
My question is - won't this code be applicable in my builder's case ? If yes, then isn't the builder correct OR will it be 5% only as you had mentioned (non-affordable) ?

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