Summary of New GST Rates applicable on Real Estate Sector w.e.f 1st April 2019 GST Council in the 34th meeting held on 19th March, 2019 at New Delhi discussed the operational details for implementation of the recommendations made by the council in its 33rd meeting for lower effective GST rate of 1% in case of affordable houses and 5% on construction of houses other than affordable house. This step was taken to boost the real estate sector and make housing more affordable as housing is one of the basic need of the Indian economy.

The Summary of New GST Rates applicable on Real Estate Sector w.e.f 1st April 2019 is given below for reference:

Particulars	Applicability	Rate of Tax	Input Tax Credit	Relevant Notification for GST Rate for under construction property
On ready-to-move (RTM) properties for which completion certificates are issued	Not applicable Because Sale of building is treated as activity or transaction which shall be treated neither as a supply of good nor a supply of service as per SCHEDULE III of CGST Act,2017		Not available	SCHEDULE III of CGST Act, 2017
On Under Construction Properties (For Homes Purchased Under Credit-Linked Subsidy Scheme)	Applicable as supply of services as per Schedule I of CGST Act, 2017	12% or 8% as the case maybe. [See Note 2]	Available	Notification No. 11/2017-Central Tax (Rate) dated the 28th June, 2017 as amended upto 1st January, 2019
On Under Construction Properties (For Homes Purchased Under Credit-Linked Subsidy Scheme)	Decision taken in 34th GST council Meeting	1%	Not available	Official Press Release
On Under Construction Properties (Other than above)	Applicable as supply of services as per Schedule I of CGST Act, 2017	18% or 12% as the case maybe. [See Note 1]	Available	Notification No. 11/2017-Central Tax (Rate) dated the 28th June, 2017 as amended upto 1st January, 2019
On Under Construction Properties (Other than above)	Decision taken in 34th GST council Meeting	5%	Not available	Official Press Release
On Land purchase and sale	Not applicable. As per Schedule III, sale of land is neither supply of goods nor services.		Not available	SCHEDULE III of CGST Act, 2017
Works contract	Applicable	18%	Available	Notification No. 11/2017-Central Tax (Rate) dated the 28th June, 2017 as amended upto 1st January, 2019
Composite supply of works contract	Applicable	18%	Available	Notification No. 11/2017-Central Tax (Rate) dated the 28th June, 2017 as amended upto 1st January, 2019
Composite supply of works Contract to Government Authorities	Applicable	12%	Available	Notification No. 11/2017-Central Tax (Rate) dated the 28th June, 2017 as amended upto 1st January, 2019
Composite supply of works contract for use by general public	Applicable	12%	Available	Notification No. 11/2017-Central Tax (Rate) dated the 28th June, 2017 as amended upto 1st January, 2019
Composite supply of works contract Affordable Housing	Applicable	12%	Available	Notification No. 11/2017-Central Tax (Rate) dated the 28th June, 2017 as amended upto 1st January, 2019

Note 1 : GST Rate for under construction property is 18%. But in case transfer of land is involved with transfer of property, the value of supply of land is considered as 1/3rd of value of supply. Effective rate of GST is 12% in Such cases.

GST Rate for under construction property	18%
Less: 1/3 of GST Rate for under construction property when land is transferred along with supply.	6%
Effective GST Rate for under construction property	12%

Note 2 : Similarly Effective GST Rate of 8% will be applicable when GST Rate of 12% exists. [Where transfer of land is involved with transfer of property]

GST Rate for under construction property (For Homes Purchased Under Credit-Linked Subsidy Scheme)	12%
Less: 1/3 of GST Rate for under construction property when land is transferred along with supply.	4%
Effective GST Rate for under construction property	8%

[caption id="attachment_60951" align="aligncenter" width="531"] Summary of New GST Rates applicable on Real Estate Sector w.e.f 1st April 2019[/caption] Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information.In no event shall I shall be liable for any direct, indirect, special or incidental damage resulting from, arising out of or in connection with the use of the information.