We are executing a residential project being classified as 'Non affordable'. One of the existing customers has availed a Housing loan from the bank under scheme CLSS (PMAY) and is making a request that GST be levied by builder at a concessional rate of 1%.
please advise us whether the same is provided in statue books Or when Affordable projects constructed by Builder shall attract concessional rate of 1%
Regards
Hubert
Non-affordable residential project to be taxed at 5% GST, not 1% as per CLSS (PMAY) scheme request. A query was raised regarding the applicable Goods and Services Tax (GST) rate for a residential project classified as 'Non-affordable.' A customer, who obtained a housing loan under the CLSS (PMAY) scheme, requested that the builder apply a concessional GST rate of 1%. The response clarified that the applicable GST rate for such projects is 5%, not the concessional rate of 1%, which is typically reserved for affordable housing projects. (AI Summary)
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