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GST Rate on affordable residential housing

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Tapas Samadder

313 Points Posted on 06 April 2023

Pls. inform GST rate on affordable residential housing which value under 45 Laçs, when I don't claim ITC.SAC code also.

Replies (2)

Quick Summary

The GST rate on affordable residential housing valued under 45 Lakhs is 1% without the ability to claim Input Tax Credit (ITC). This rate applies to properties with a carpet area of up to 90 sqm in non-metropolitan areas or 60 sqm in metropolitan areas. The relevant SAC codes are 995411 or 995412, depending on the project type, and this revised rate has been effective since April 1st, 2019.

CA Mayank A Jain

Chartered Accountant in Practice

855 Points Posted on 06 April 2023

The rate of tax is 1.5% on 2/3rd value of the residential unit. ITC cannot be claimed. The HSN code is 995411 or 995412 depending on the project.

995411 General Construction services of single dwelling or multi dwelling or multi-storied residential buildings

995412 General Construction services of other residential buildings

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121528 Points Posted on 06 April 2023

GST rate: under sac code 995411

i. GST levied at effective GST rate of 5% without ITC on residential properties outside affordable segment;

ii. GST levied at effective GST of 1% without ITC on affordable housing properties.

Effective date: The new rate applicable from 1st of April, 2019.

Definition of affordable housing :- A residential house/flat of carpet area of upto 90 sqm in non-metropolitan cities/towns and 60 sqm in metropolitan cities having value upto Rs. 45 lacs (both for metropolitan and non-metropolitan cities).