If you are buying a home or any other property, then you should know about GST rates on buying home. GST rates, which came into effect from July 1, have seen major changes so far. At the same time, the buyer does not have to give GST on the Ready to Move Property. Please tell you that before this GST, there were also all indirect taxes like VAT, service tax, excise, stamp duty and registration fees.
Know More About GST Impact over Properties
(1) GST rate on real estate has been reduced to 12% of GST for the real estate sector with input tax credit. This includes the cost of land. GST is not applicable on the ready-to-move-in property.
(2) There are certain conflicts with regard to the property under construction. There are different steps for this kind of property. The rate of GST depends on these. Take a look at these steps.
(3) GST on the flat, property or commercial property under construction, the actual GST rate in this category is 18%. But, it is considered to be the cost of one-third of the land. In this way, the rate of GST decreases to 12% with the full input credit on flat, property or commercial property under construction.
(4) After the compliance certificate is issued to the builder, you have purchased the property. In this situation, GST will not be applicable. The reason is that it will be considered a ready-to-move-in property. Before the GST system, the builder has paid some or nothing to the builder. If you have made full or partial payment before the GST system is implemented, then no GST tax will be charged. However, it will be taxed at 4.5 per cent.
(5) GST on resell properties or flat because they are considered to be ready-to-move-in properties, they do not seem to be GST.