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TMI BlogGST on Residential ProjectX X X X Extracts X X X X X X X X Extracts X X X X ..... As per the Notification, the GST Rate for Construction of affordable residential apartments by a promoter in a Residential Real Estate Project is 1.5% (0.75 + 0.75). However, under commentaries in the Taxmann website and many other places, it is mentioned as 1% (0.5 + 0.5). Please guide. - Reply By Amit Agrawal - The Reply = Both things are correct, if taken from angle of generally followed trad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e practices of expression. The actual tax-rate of 1.5% becomes effective rate of 1% of total consideration once you reduce 'deemed value of one third of the total consideration for such supply' towards the 'value of transfer of land or undivided share of land' so as to arrive at 'value of construction services for payment of gst'. In other words, 2/3 (1.5%) = 1%. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se are ex facie views of mine and the same should not be construed as professional advice / suggestion. - Reply By Kaustubh Karandikar - The Reply = Thanks Amit Sir for yur quick and accurate guidance. - Reply By Padmanathan Kollengode - The Reply = In my humble opinion, the correct rate of tax is 1.5% (0.75% + 0.75%). However, since 1/3 abatement is given to the land value, the effective ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te will be 1%. For disclosure in returns, the value after abatement of land must be under declared under 1.5% rate - Reply By Shilpi Jain - The Reply = Agreed. The rate of tax is actually 1.5% and the deduction of 1/3rd given is only in the valuation. This is the manner in which the disclosure should also be made in the returns. Many times it is seen that the taxpayers disclose rate of tax as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1% and 5% instead of 1.5% and 7.5% for affordable and other than affordable residential projects - Reply By Amit Agrawal - The Reply = I agree with Ms. Shilpi Mam that for disclosure under GST records / submissions, tax-invoices etc., tax-payer should disclose tax-rate @ 1.5% or 7.5% ( not 1% or 5%), as the case may be and taxable value as ''2/3 of 'total consideration which includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es land'' ( not 100% of 'total consideration which includes land). These are ex facie views of mine and the same should not be construed as professional advice / suggestion. - Reply By Amit Agrawal - The Reply = Though my post at serial number 1 states the same thing, it is better to give further clarity for better understanding for everyone. - Reply By Kaustubh Karandikar - T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Reply = thanks amit ji and shilpi ji for your support as always - GST on Residential Project - Query Started By: - Kaustubh Karandikar Dated:- 23-12-2022 Goods and Services Tax - GST - Got 7 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x ..... X X X X Extracts X X X X X X X X Extracts X X X X
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