FINMIN MAKES EXCEPTION FOR GST ON FLATS
New Delhi, Dec. 8: The finance ministry on Saturday said GST will not be levied on buyers of real estate properties for which completion certificate is issued at the time of sale.
However, Goods and Services Tax (GST) is applicable on sale of underconstruction property or ready to move in flats where completion certificate is not issued at the time of sale, it said. The ministry also asked the builders to reduce the prices of properties by passing on the benefit of lower GST rate.
“It is brought to the notice of buyers of constructed property that there is no GST on sale of complex/building and ready to move in flats where sale takes place after issue of completion certificate by the competent authority.”
Affordable housing projects like Jawaharlal Nehru National Urban Renewal Mission, Rajiv Awas Yojana, Pradhan Mantri Awas Yojana attracts 8 per cent GST, which can be adjusted by the builders against its accumulated input tax credit.