New GST Rates for Real Estate Sector Notified [Read GST Notification]
To boost real estate sector GST council in its 34th GST Council Meeting recommended GST Rate of 1% for Construction Projects (For Homes Purchased Under Credit-Linked Subsidy Scheme) and 5% for other construction projects.
The same has been notified now and is applicable with effect from 1st April 2019.
New GST Rates for Real Estate Sector Notified [Read GST Notification]
Notifications making amendment in Old CGST Rate notifications are given below for reference :
|
S.no. |
Notification |
Remarks |
|
|
1.) |
Seeks to amend notification No. 11/2017- Central Tax (Rate) so as to notify CGST rates of various services as recommended by Goods and Services Tax Council for real estate sector. |
1.) GST rate of 1% (Without ITC) is applicable On Under Construction Properties (For Homes Purchased Under Credit-Linked Subsidy Scheme)
2.) GST rate of 5% (Without ITC) is applicable On Under Construction Properties (Other than above) |
|
|
2.) |
Seeks to amend notification No. 12/2017- Central Tax (Rate) so as to exempt certain services as recommended by Goods and Services Tax Council for real estate sector. |
Supply of TDR(transfer of development rights), FSI(Floor Space Index), long term lease (premium) of land by a landowner to a developer has been exempted subject to the condition that the constructed flats are sold before issuance of completion certificate and tax is paid on them. |
|
|
3.) |
Seeks to amend notification No. 13/2017- Central Tax (Rate) so as to specify services to be taxed under Reverse Charge Mechanism (RCM) as recommended by Goods and Services Tax Council for real estate sector. |
Reverse Charge Mechanism applicable in case of supply of certain services to the Promoter of the Real Estate Project :
1. Services supplied by any person by way of transfer of development rights or Floor Space Index (FSI) (including additional FSI) for construction of a project by a promoter.
2. Long term lease of land (30 years or more) by any person against consideration in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name) and/or periodic rent for construction of a project by a promoter. |
|
Notifications making amendment in Old IGST Rate notifications are given below for reference :
|
S.no. |
Notification |
Remarks |
|
|
1.) |
Seeks to amend notification No. 8/2017- Integrated Tax (Rate) so as to notify IGST rates of various services as recommended by Goods and Services Tax Council for real estate sector. |
1. GST rate of 1% (Without ITC) is applicable On Under Construction Properties (For Homes Purchased Under Credit-Linked Subsidy Scheme)
2.) GST rate of 5% (Without ITC) is applicable On Under Construction Properties (Other than above) |
|
|
2.) |
Seeks to amend notification No. 9/2017- Integrated Tax (Rate) so as to exempt certain services as recommended by Goods and Services Tax Council for real estate sector. |
Supply of TDR(transfer of development rights), FSI(Floor Space Index), long term lease (premium) of land by a landowner to a developer has been exempted subject to the condition that the constructed flats are sold before issuance of completion certificate and tax is paid on them. |
|
|
3.) |
Seeks to amend notification No. 10/2017- Integrated Tax (Rate) so as to specify services to be taxed under Reverse Charge Mechanism (RCM) as recommended by Goods and Services Tax Council for real estate sector. |
Reverse Charge Mechanism applicable in case of supply of certain services to the Promoter of the Real Estate Project :
1. Services supplied by any person by way of transfer of development rights or Floor Space Index (FSI) (including additional FSI) for construction of a project by a promoter.
2. Long term lease of land (30 years or more) by any person against consideration in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name) and/or periodic rent for construction of a project by a promoter. |
|
Notifications making amendment in Old UTGST Rate notifications are given below for reference :
|
S.no. |
Notification |
Remarks |
|
|
1.) |
Seeks to amend notification No. 11/2017- Union Territory Tax (Rate) so as to notify UTGST rates of various services as recommended by Goods and Services Tax Council for real estate sector. |
1. GST rate of 1% (Without ITC) is applicable On Under Construction Properties (For Homes Purchased Under Credit-Linked Subsidy Scheme)
2.) GST rate of 5% (Without ITC) is applicable On Under Construction Properties (Other than above) |
|
|
2.) |
Seeks to amend notification No. 12/2017- Union Territory Tax (Rate) so as to exempt certain services as recommended by Goods and Services Tax Council for real estate sector. |
Supply of TDR(transfer of development rights), FSI(Floor Space Index), long term lease (premium) of land by a landowner to a developer has been exempted subject to the condition that the constructed flats are sold before issuance of completion certificate and tax is paid on them. |
|
|
3.) |
Seeks to amend notification No. 13/2017- Union Territory Tax (Rate) so as to specify services to be taxed under Reverse Charge Mechanism (RCM) as recommended by Goods and Services Tax Council for real estate sector. |
Reverse Charge Mechanism applicable in case of supply of certain services to the Promoter of the Real Estate Project :
1. Services supplied by any person by way of transfer of development rights or Floor Space Index (FSI) (including additional FSI) for construction of a project by a promoter.
2. Long term lease of land (30 years or more) by any person against consideration in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name) and/or periodic rent for construction of a project by a promoter. |
|
Tags : gst rate on real estate, gst on under construction property, how to calculate gst on under construction property, gst on real estate, impact of gst on real estate
The post New GST Rates for Real Estate Sector Notified [Read GST Notification] appeared first on StudyCafe.
from StudyCafe https://ift.tt/2I1Hxkc
No comments:
Post a Comment