GST on Flat Purchase and its Impact on Home Buyers

Ans. Yes, real estate is subject to GST (Goods and Services Tax) in India, depending on the type of property.

Ans. GST is a mandatory tax levied by the government and cannot be avoided. However, a homebuyer can avoid GST by purchasing a completed flat or ready-to-move-in property, as such type of properties are not subject to GST.

Ans. The GST rate is 12% on commercial property.

Ans. The GST on an under-construction flat (Affordable housing) was 8% with ITC till March 2019 but was revised to 1% without ITC from April 2019, GST on luxury flats was 12% with ITC and was changed to 5% without ITC from April 2019 onwards.

Ans. GST cannot be avoided on under-construction property purchases.

Ans. There are no recent developments in GST norms on home purchases.

Ans. The GST (Goods and Services Tax) is paid by the home buyer, and it is the responsibility of the builder to remit the GST to the government of India.

Ans. GST can be claimed only on under-construction flats by submitting a refund application to the GST authorities with details such as the GSTIN of the property builder and the amount of GST paid.

Ans. The 12% GST (Goods and Services Tax) applies to commercial property purchases.