GST on Residential Project

[Kaustubh Karandikar]

As per the Notification, the GST Rate for Construction of affordable residential apartments by a promoter in a Residential Real Estate Project is 1.5% (0.75 + 0.75). However, under commentaries in the Taxmann website and many other places, it is mentioned as 1% (0.5 + 0.5). Please guide.

AI Summary

Clarifying GST Rate for Affordable Housing: Officially 1.5% but Effectively 1% Due to Land Abatement Disclosure. A discussion on the Goods and Services Tax (GST) rate for affordable residential apartments in a Residential Real Estate Project reveals a discrepancy between the official rate and common interpretations. Officially, the GST rate is 1.5% (0.75% + 0.75%), but due to a 1/3 abatement for land value, the effective rate is considered 1%. Participants agree that for disclosure purposes, the rate should be stated as 1.5% to reflect the actual calculation basis. The conversation emphasizes the importance of correct disclosure practices in GST records and tax invoices.