GST Rate on affordable residential housing

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 

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).