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

Clarification on GST Rates: Mixed Housing Projects Can Have Both 1% and 5% GST Based on Individual Unit Assessment. In a discussion forum about GST rates for a housing project, a query was raised regarding the applicability of different GST rates for affordable and non-affordable residential apartments within a single Residential Real Estate Project (RREP). The question asked whether all apartments must meet affordable housing criteria to qualify for a 1% GST rate. The response clarified that it is not necessary for all apartments to be affordable to benefit from the 1% rate. Each apartment is assessed individually, allowing for a mix of units with some qualifying for 1% GST and others taxed at 5%.