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

Clarification on GST Rate: Under-Construction Residential Flats Taxed at 12% After Land Value Deduction Per Section 15. A query was raised regarding the applicable GST rate on a residential flat purchased under construction. The buyer had initially paid a portion of the cost along with service tax and VAT before GST was implemented and sought clarification on the GST rate for the remaining balance. Respondents clarified that the GST rate for under-construction residential flats is 12%, after a deemed deduction of 6% from the actual rate of 18%. This deduction accounts for the land value, which is considered one-third of the total cost. The responses confirmed the applicability of this rate to the situation described.