GST RATES FOR A CONSTRUCTION OF HOUSING PROJECT

[hubert fernandes]

In a single Housing Project i.e RREP (Residential Real Estate Project) ,can we construct affordable residential apartments with 1 % applicable GST( being below 90 M2 & gross amount charge under 45 lakhs) & also construct non-affordable residential apartments with 5% applicable GST, or is it that Housing project (RREP) should be exclusively with all apartments in a project falling under criteria of affordable housing i.e below 90 M2 & gross amount charged under 45 lakhs) then only concessional rate of 1% is applicable ?

[KUNAL DESAI]

It is not necessary to construct only affordable housing in a project to avail benefit of 1%. The concessional rate of 1% is to be seen in the context of each and every individual flat. It is not at all necessary to construct all flats with same sizes.

Resultantly, test of 90 sq. mtr and consideration of ₹ 45,00,000/- is to be applied on every flats individually. It shall also be possible that there are mix units wherein some of them are leviable at 1% and some of them are taxable at 5%.

AI Summary

Concessional GST rate applies to individual affordable flats; mixed housing projects may include both concessional and standard-rated units. Concessional GST of 1% for affordable housing is applied on an individual-flat basis where each flat meeting the size and gross amount thresholds qualifies. A Housing Project need not consist exclusively of such flats; mixed units can attract either the concessional rate or the higher rate depending on each unit's compliance with the eligibility tests.