New gst rate structure for real estate projects

Definition of important Terms

Real estate project(REP)  means

• Development of a building or a building consisting of apartments, OR
• Converting an existing building or a part thereof into apartments, OR
• The development of land into plots or apartment
• For the purpose of selling all or some of the said apartments or plots or building
• And includes the common areas, the development works, all improvements and structures thereon, and all easement, rights and appurtenances belonging thereto

Residential Real Estate Project(RREP) means 

• Real Estate Project(REP)

In which

Carpet area of commercial apartment

is not more then                   (i.e. less than or equal to)

15% of total carpet area of all apartments in REP

(I.e. total carpet area of residential apartment + commercial apartment)

Residential apartment

• Apartment intended for residential use as declared with RERA

 Commercial apartment                                                                                                

• Apartment other than a residential apartment

Affordable residential apartment

• Residential apartment
• Having carpet area not exceeding 60 square meter in metropolitan* city OR
• 90 square meter in cities or towns other than metropolitan* cities AND
• For which the gross amount charged is not more than 45 lakhs rupees.

*Metropolitan cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Gaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai

Download the attached file to get better understanding