GST rate on purchase of residential flat under construction

[saraswati konka]

Dear Sir,

We have purchased / booked a residential flat which was under construction say for 20 Lacs prior to GST.

We also paid 5,00,000 lacs prior to GST along with service tax and vat amounts. Now, the balance amount of 15,00,000 will have to be paid under GST regime.

So the query is what would be the rate of GST on under construction residential flats.

Request you to kindly guide on the same.

Regards

[Vamsi Krishna]

Hi

Rate of GST is 12% (after deemed deduction of 6% which is 1/3 of actual rate of 18%)

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Vamshi.

[Ganeshan Kalyani]

Under construction property attracts tax.

AI Summary

GST on under-construction residential property applies after deemed deduction, affecting balance payments under the GST regime. GST on under construction residential property is taxable and applies to amounts payable under the GST regime. The operative rate indicated is 12% after a deemed deduction of 6% (one third of 18%); pre GST payments are treated separately, while the outstanding balance is subject to GST at that rate.