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 on new residential projects requires the new scheme; cash payment, ITC ineligible, and RCM applies to unregistered inputs.
New residential constructions started on or after 01.4.2019 must follow the new residential project scheme when registered under RERA, with concessional GST rates depending on affordable housing qualification. Tax under the scheme must be paid in cash and input tax credit is ineligible. A specified high share of project purchases must be from registered suppliers or the shortfall will attract reverse charge mechanism; purchases of cement from unregistered suppliers attract RCM.