Real Estate- GST

[VIGNESH]

Sir kindly clarrify

1. a builder who builds 10 row houses should be compulsory exercise REP or RRep scheme?

2.if not necessary then what is the GST tax rate applicable sir

[KASTURI SETHI]

Pl. elaborate your query.

[Mayank Jain]

The new scheme should mandatorily be followed for new residential projects. Therefore, 10 row houses which would registered as a project under RERA, the applicable GST rate is 1% (affordable) or 5%.

[CA HemanthKumar]

In case if it is a new residential construction started on or after 01.4.2019, the applicable rate of tax would be

a. 1% -for affordable housing projects

b. 5% for other than affordable housing

Other conditions will be

1. Tax has to be paid in cash only and ITC is ineligible

2. Minimum 80% of project cost should be a registered purchases- short fall RCM will apply

3. Unregistered Cement purchases will attract RCM

Regards

CA Hemanth Kumar

AI Summary

GST Rates for Builders: 1% for Affordable and 5% for Other Housing under RERA, No ITC Allowed A discussion on the Goods and Services Tax (GST) applicable to a builder constructing 10 row houses. The query seeks clarity on whether the builder must follow the REP or RRep scheme and the applicable GST rate. Responses indicate that for new residential projects registered under RERA, the GST rate is 1% for affordable housing and 5% for other projects. Additional conditions include mandatory cash payment of tax, ineligibility for Input Tax Credit (ITC), and requirements for registered purchases, with Reverse Charge Mechanism (RCM) applicable for shortfalls and unregistered cement purchases.