GST revised for real estate sector. At the 33rd GST Council Meeting which was held on 24th February 2019, the council has introducted new GST rates for residential real estate. These rates will comes into effect from the 1st of April 2019. The new GST rates which will be applied on residential real estate transactions are described below:
- GST will be charged at 5% on residential properties which do not come under affordable housing segment.
- GST will be charged at 1% on residential properties that come under affordable housing segment.
The comparison for existing rates and updated rates have been given below:
GST on construction materials :
GST is applied in real estate through two key aspects. The first is through the GST which is applicable on various construction material and the second component is the GST applicable on the services segment i.e. the service of construction itself.Both these construction and service segment add up in final cost of the property for the owner