GST on residential cum commercial building

This discussion clarifies the Goods and Services Tax (GST) applicable to buildings that combine residential and commercial units. The key factor determining the GST rate is the proportion of commercial space. If commercial areas constitute 15% or less of the total carpet area, the entire project, including shops, may be eligible for the concessional 5% GST rate, though Input Tax Credit (ITC) is generally not available. However, if commercial space exceeds 15%, different GST rates may apply to residential and commercial units, with potential implications for ITC.