14 June 2020
Real Estate is an important pillar of the Indian Economy. Under the earlier tax regime, various taxes like VAT, service tax, stamp duty, and registration charges were paid by the buyers. However, under GST a single rate of 12% is applicable on under construction properties whereas no GST is applicable on completed or ready to sale properties only if the Completion Certificate has been issued.
In recent policy, the GST Council has cut the tax rates to 5% from 12% on premium houses and, 1% from 8% for affordable houses. However, ITC benefit will not be available under the new tax rate policy.
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