New GST Rates for Real Estate Sector Notified [Read GST Notification]

S.no.

Notification

Remarks

1.)

03/2019-Central Tax (Rate) ,dt. 29-03-2019

Seeks to amend notification No. 11/2017- Central Tax (Rate) so as to notify CGST rates of various services as recommended by Goods and Services Tax Council for real estate sector.

1.) GST rate of 1% (Without ITC) is applicable On Under Construction Properties (For Homes Purchased Under Credit-Linked Subsidy Scheme)

2.) GST rate of 5% (Without ITC) is applicable On Under Construction Properties (Other than above)

2.)

04/2019-Central Tax (Rate) ,dt. 29-03-2019

Seeks to amend notification No. 12/2017- Central Tax (Rate) so as to exempt certain services as recommended by Goods and Services Tax Council for real estate sector.

Supply of TDR(transfer of development rights), FSI(Floor Space Index), long term lease (premium) of land by a landowner to a developer has been exempted subject to the condition that the constructed flats are sold before issuance of completion certificate and tax is paid on them.

3.)

05/2019-Central Tax (Rate) ,dt. 29-03-2019

Seeks to amend notification No. 13/2017- Central Tax (Rate) so as to specify services to be taxed under Reverse Charge Mechanism (RCM) as recommended by Goods and Services Tax Council for real estate sector.

Reverse Charge Mechanism applicable in case of supply of certain services to the Promoter of the Real Estate Project :

1. Services supplied by any person by way of transfer of development rights or Floor Space Index (FSI) (including additional FSI) for construction of a project by a promoter.

2. Long term lease of land (30 years or more) by any person against consideration in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name) and/or periodic rent for construction of a project by a promoter.

S.no.

Notification

Remarks

1.)

03/2019-Integrated Tax (Rate) ,dt. 29-03-2019

Seeks to amend notification No. 8/2017- Integrated Tax (Rate) so as to notify IGST rates of various services as recommended by Goods and Services Tax Council for real estate sector.

1. GST rate of 1% (Without ITC) is applicable On Under Construction Properties (For Homes Purchased Under Credit-Linked Subsidy Scheme)

2.) GST rate of 5% (Without ITC) is applicable On Under Construction Properties (Other than above)

2.)

04/2019-Integrated Tax (Rate) ,dt. 29-03-2019

Seeks to amend notification No. 9/2017- Integrated Tax (Rate) so as to exempt certain services as recommended by Goods and Services Tax Council for real estate sector.

Supply of TDR(transfer of development rights), FSI(Floor Space Index), long term lease (premium) of land by a landowner to a developer has been exempted subject to the condition that the constructed flats are sold before issuance of completion certificate and tax is paid on them.

3.)

05/2019-Integrated Tax (Rate) ,dt. 29-03-2019

Seeks to amend notification No. 10/2017- Integrated Tax (Rate) so as to specify services to be taxed under Reverse Charge Mechanism (RCM) as recommended by Goods and Services Tax Council for real estate sector.

Reverse Charge Mechanism applicable in case of supply of certain services to the Promoter of the Real Estate Project :

1. Services supplied by any person by way of transfer of development rights or Floor Space Index (FSI) (including additional FSI) for construction of a project by a promoter.

2. Long term lease of land (30 years or more) by any person against consideration in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name) and/or periodic rent for construction of a project by a promoter.

S.no.

Notification

Remarks

1.)

03/2019-Union Territory tax(rate), dt. 29-03-2019

Seeks to amend notification No. 11/2017- Union Territory Tax (Rate) so as to notify UTGST rates of various services as recommended by Goods and Services Tax Council for real estate sector.

1. GST rate of 1% (Without ITC) is applicable On Under Construction Properties (For Homes Purchased Under Credit-Linked Subsidy Scheme)

2.) GST rate of 5% (Without ITC) is applicable On Under Construction Properties (Other than above)

2.)

04/2019-Union Territory tax(rate), dt. 29-03-2019

Seeks to amend notification No. 12/2017- Union Territory Tax (Rate) so as to exempt certain services as recommended by Goods and Services Tax Council for real estate sector.

Supply of TDR(transfer of development rights), FSI(Floor Space Index), long term lease (premium) of land by a landowner to a developer has been exempted subject to the condition that the constructed flats are sold before issuance of completion certificate and tax is paid on them.

3.)

05/2019-Union Territory tax(rate), dt. 29-03-2019

Seeks to amend notification No. 13/2017- Union Territory Tax (Rate) so as to specify services to be taxed under Reverse Charge Mechanism (RCM) as recommended by Goods and Services Tax Council for real estate sector.

Reverse Charge Mechanism applicable in case of supply of certain services to the Promoter of the Real Estate Project :

1. Services supplied by any person by way of transfer of development rights or Floor Space Index (FSI) (including additional FSI) for construction of a project by a promoter.

2. Long term lease of land (30 years or more) by any person against consideration in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name) and/or periodic rent for construction of a project by a promoter.