Gst on under construction affordable housing

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Saptarshi Ghosh

1 Points Posted on 10 March 2019

I am planning to buy an under construction flat in Kolkata. The carpet area of the flat is below 60 sq mt and the price is below 45 lacs. But the builder is asking for 5% GST saying that any flat is eligible for 1% GST only when all the flat is the project falls in that category. Since there are few flats above 60 sq mt he is demanding 5% GST. Kindly help me with official guidelines. Thanks in advance.

Replies (2)

Pankaj Rawat

GST Practitioner

55067 Points Posted on 10 March 2019

As per NACIN update :

GST Rates for Real Estate Sector to be effective from
1st April, 2019

• Effective GST rate of 5% without ITC on residential properties
outside affordable segment;

• Effective GST of 1% without ITC on affordable housing
properties.

• Definition of affordable housing:
• A residential house/flat of carpet area of up to 90 sqm in nonmetropolitan cities/towns and 60 sqm in metropolitan cities
having value up to Rs. 45 lacs (both for metropolitan and nonmetropolitan cities).
• Metropolitan Cities are Bengaluru, Chennai, Delhi NCR (limited
to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad),
Hyderabad, Kolkata and Mumbai (whole of MMR

Hence first of all it's applicable from 1/4/2019 & the more clarification in this regard will available only when the Notification is issue .

Yes your builder is correct upto the extent that Project should be approved in the category . But I Still state that more clarity will come only after Notification