GoM decides to recommend 5% GST for under construction properties without ITC

GoM decides to recommend 5% GST for under construction properties without ITC As per decision made by GSTN Council in it's 31st Meeting, Law

CA Deepak Gupta

Feb 8, 2019

Last update on Feb 8, 2019

GoM decides to recommend 5% GST for under construction properties without ITC

As per decision made by GSTN Council in it's 31st Meeting, Law Committee and Fitment Committee was formed for Taxation of residential property in real estate sector.

The Committee has decided to recommend 5% GST for under construction properties without ITC. Further the GOM has recommended to levy 3% GST on affordable housing scheme.

At present, GST is levied at 12 per cent with Input tax credit (ITC) on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale. However, GST is not levied on buyers of real estate properties for which completion certificate has been issued at the time of sale.

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CA Deepak Gupta

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CA Deepak Gupta,is Co-founder of Studycafe. He is Microsoft Office Specialist and Corporate Trainer of AI Tools, Microsoft Excel. He is Finance Influencer having more than 250K followers on Social Media. CA Deepak Gupta, is Having more than 14 plus years of experience, and he has Worked with best brands Like, Hero, Wipro, Ericsson before Starting Studycafe. He has Trained more than 20000 Persons in Microsoft Excel, PowerPoint, Power BI, Google Sheet, Google Forms and Other Tools.