GST RATE ON CONSTRUCTION SERVICE

[Mehul Pandya]

DEAR SIR,

A REAL ESTATE DEVELOPER IS PROVIDING CONSTRUCTION SERVICE OF RESIDENTIAL HOUSES. LAND VALUE IS NOT INCLUDED. SINCE JULY-17 HE IS PAYING 18% GST ON VALUE. SOME BUYERS ARE ALSO GETTING SUBSIDY UNDER PRADHAN MANTRI AWAS YOJANA AS PER THEIR ELIGIBILITY. NOW CONFUSION IS REGARDING GST RATE BETWEEN 18% OR 12%.

PL. GUIDE....

AI Summary

GST Rate for Real Estate: 18% with Land, 12% without; Pradhan Mantri Awas Yojana Offers 8% Concession A real estate developer providing construction services for residential houses is unsure about the applicable GST rate, whether it should be 18% or 12%, as buyers receive subsidies under the Pradhan Mantri Awas Yojana. The response clarifies that the GST rate is 18% if the land value is included and 12% if not, according to Notification No.11/17-CT (Rate). For the Pradhan Mantri Awas Yojana, the concessional rate is 8% without land value and 12% with it. Input Tax Credit (ITC) is available in both scenarios.