All you need to know about the GST applicable on properties

Real estate is the second largest employment provider in the country, making it a crucial part. Like all other commodities, GST is also applicable to buying and selling of real estate.

However, a standard GST rate of 12% is applicable across the sector for properties under construction. This rate is quashed for ready-to-move-in and other properties that have received Completion Certification (CC).

In the GST council meeting held in 2019, the applicable rates were reduced to 5% from 12% on residential properties. GST on property purchase under affordable housing has been reduced to 1% from 8%.

Let us learn about these GST rates in detail Types of central and state taxes covered under GST
Here are some state and central taxes that were subsumed under GST (Goods and Service Tax).

Central Taxes

• Excise duty
• Custom duty
• Service tax
• VAT
• Special Additional Duty of Customs
• Central Sales Tax
• Central Surcharge and cess on supply of goods and services
• State Taxes

State VAT

• Entertainment tax
• Luxury tax
• State excise duty
• State surcharge and cess on supply of goods and services
• Ad taxes
• Purchase taxes
• Taxes on lottery, gambling, and betting
• GST on Real Estate

• The real estate market has been in a state of slowdown even before the pandemic began last year. Since the outbreak of the pandemic, the Indian government has modified GST rates to stimulate the industry.