GST rate 7.5% applicability

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The GST rate of 7.5% applies to residential apartments that are not classified as 'affordable housing'. This rate is effective from April 1st, 2019, and is calculated as 7.5% before deducting the land cost, resulting in an effective rate of 5% after land cost deduction. For example, on a flat costing £600,000, the GST charged would be 5% of the property value after land cost.

pranab sarma

pranab sarma (Querist)

20 July 2023 In which case GST @ 7.5% is chargeable, please suggest with some example . Thank you

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 July 2023 GST Rates on Real Estate on or after 01st April 2019
In the 33rd GST Council meeting dated 24.02.2019 following rates revision for residential apartments are recommended and which are finalized in 34th GST Council meeting dated 19.03.19 applicable from 01.04.2019 :
1. GST @ 1.5% (Effective rate 1% after deducting Land Cost) without ITC for affordable residential apartments.
2. GST @ 7.5% (Effective rate 5% after deducting Land Cost) without ITC for residential apartments other than affordable residential apartments.

pranab sarma

pranab sarma (Querist)

20 July 2023 Then sir , for a flat costing Rs.60,00,000/- how I charged GST ; I mean 5% on Rs.60,00,000/- or 7.5% on 60,00,000/- ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 July 2023 It's 5% on 60,00,000..

pranab sarma

pranab sarma (Querist)

21 July 2023 Thank you Seetharaman Sir.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

21 July 2023 You are welcome...
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