If you are planning to buy a new home in India and do not know how many GSTs and services will be taxed, then you have become easier to know. The government has fixed clear guidelines regarding GST levied on different types of properties.
Only 5% GST on ‘affordable houses’
If you are buying a flat with less than Rs 1 lakh in metropolis like Delhi, Mumbai, Kolkata or Chennai and the carpet area less than 3 square meters, it will come to the range of affordable housing. In this case, you only have to pay 5% GST.
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On the other hand, if the flat price in non-metro cities is less than Rs 1 lakh and the carpet area is less than 90 square meters, it comes into the range of affordable housing and only 5% GST has to be paid. However, in this category you will not get the benefit of input tax credit (ITC).
5% GST on non -affordable property
If you do not meet the above criteria, that is, it is outside the orbit of affordable homes, it will have to be paid 5% GST. Input tax credit facilities will not be available on this.
If you have purchased a fully constructed and a builder’s property certificate, no GST will be levied on such a ready-made property or redevelopment flat
However, it is important to ensure that the builder has taken a certificate of completion. In addition, GST can be applied to such property.
No GST will be levied on the plot
If you are just buying the land, GST will not be applied to it. But keep in mind that this land should not be to any construction plan.
In addition to the GST, what charges have to be paid
It is very important to remember that GST is different and without which you have to pay stamp duty and registration fees. These costs are also included in the total cost of the property and cannot be ignored.
Overall, if you are planning to buy a home, it is important to know which category your property comes in. Completion certificate plays an important role in determining GST on things like the size and location of the property. With the help of this information, you can make more informative decisions and avoid unnecessary taxes.
