GST on Real Estate: Under Construction Property#
GST Rates on Real Estate#
Residential ( Affordable Housing)#
- 1% (without ITC)
- 5% (with ITC)
Residential (Non-Affordable)#
- 8% (without ITC)
- 18% (with ITC)
Commercial#
- 18% (with ITC)
Affordable Housing Criteria#
- Carpet area: 90 sqm (metro), 110 sqm (non-metro)
- Price: ₹45 lakh (metro), ₹35 lakh (non-metro)
Input Tax Credit#
- Can claim ITC on construction
- Requires project registration
Key Points#
- Ready reckoner value considered
- Land value deducted
- Floor space index matters
Builders Options#
- Pay 5%/1% without ITC
- Pay 18% with ITC
Conclusion#
Real estate GST depends on property type.