Applicable GST rate 5% or Concessional rate of 1% ?

[hubert fernandes]

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

[Himansu Sekhar]

Rate will be 5%

AI Summary

GST rate for non-affordable housing: concessional housing loan under CLSS does not entitle builders to reduced GST.
A purchaser's concessionary housing loan does not change the GST treatment of a project classified as non affordable residential; the builder must apply the standard GST rate for non affordable construction rather than the concessional housing construction rate.