GST Applicability - Under Construction and Ready-To-Move-In Properties
CBEC has clarified on 14-12-2017 that no GST is applicable on ready-to-move-in or completed properties as per Para 5(b) of Schedule II of the CGST Act, 2017. GST is payable only on the under construction properties, which have been categorically summarized here-in-below for ease of your reference:
(a) Property for which completion certificate has been issued : No GST is applicable on ready-to-move-in or completed property as per the CGST Act, 2017.
(b) Under Construction property when part consideration has been paid to the builder before GST rollout : Service Tax at the rate of 4.5% is applicable on the invoices raised or consideration paid before 01-07-2017. However, GST at the rate of 12% shall be applicable on the invoices raised or consideration paid on or after 01-07-2017.
(c) Under construction property when entire consideration paid to the builder before GST rollout : No GST is payable on such property even if the construction is completed after 01-07-2017. Such transaction will attract Service Tax at the rate of 4.5% as per the Point of Taxation Rules, 2011.
Further, the effective rate of GST payable on purchase of under construction properties from a builder involving transfer of interest in land or individual share of land to the buyer, shall be 12% with full Input Tax Credit [GST payable at the rate of 18% on two-third of the amount for the property only].
However, consideration which doesn't constitute transfer in land or undivided share of land as part of consideration, such as construction services provided by a sub-contractor to the builder, shall attract GST at the rate of 18% with full ITC.
• 1. Select relevant tiles only for entering data.
• 2. File Nil Return in one step.
Exemption from GST registration has now been granted to the inter-state supplier of services including the person supplying through e-commerce operator if their turnover does not exceed Rs 20 lakhs (Rs. 10 lakh in case of special category states except J&K).