Real Estate- GST, Goods and Services Tax - GST

[vignesh VSACCOUNTOPRIVATELIMITED]

Sir kindly clarrify

1. a builder who builds 10 row houses should be compulsory exercise REP or RRep scheme?

2.if not necessary then what is the GST tax rate applicable sir

Posts / Replies

[KASTURI SETHI]

Pl. elaborate your query.

[Mayank Jain]

The new scheme should mandatorily be followed for new residential projects. Therefore, 10 row houses which would registered as a project under RERA, the applicable GST rate is 1% (affordable) or 5%.

[Hemanth Kumar]

In case if it is a new residential construction started on or after 01.4.2019, the applicable rate of tax would be

a. 1% -for affordable housing projects

b. 5% for other than affordable housing

Other conditions will be

1. Tax has to be paid in cash only and ITC is ineligible

2. Minimum 80% of project cost should be a registered purchases- short fall RCM will apply

3. Unregistered Cement purchases will attract RCM

Regards

CA Hemanth Kumar