GST on Real Estate Vishwanath Bhat Cost Accountant

GST on Real Estate Vishwanath Bhat Cost Accountant Treasurer SIRC , I C A I 9448357102 `

GST on Real Estate (wef April 01, 2019)

Real Estate Transaction • Supply of real estate before completion (commercial/ residential). • Supply of real estate after completion (commercial/ residential). • Sale of land commercial) (agricultural / residential/ • Sale of rights arising out land (such as TDR)

Rate of GST on real estate before 31 st March 2019 • GST at 12% was leviable (after 1/3 rd deduction towards land value).

From 1 st April 2019 • GST @ 1% without ITC for affordable housing properties. • GST @ 5% without ITC for residential properties other than affordable segment. • GST @ 12% with ITC for commercial properties (other than specified ones which will attract GST @ 5%).

Deduction towards land / undivided share of land 1/3 of the consideration. Before 31/03/2019………………. . After 1/4/2019…………………. .

Input. • Immovable. • Residential / commercial. Before 31/03/2019…………… After 1/4/2019

Position of On going project as on 31/3/2019 • Optional. • It may be noted that the option to choose the new rates can be either, flat-wise, floor-wise, wing-wise, building-wise, phase-wise, projectwise, State-wise or all India-wise. • Project. Wise

New rate of 1 % and 5 % applicable subject to • Input tax credit shall not be available and • 80% of inputs and input services (other than capital goods, TDR/ JDA, FSI, long term lease (premiums)) shall be purchased from registered persons. On shortfall of purchases from 80%, tax shall be paid by the builder @ 18% on RCM basis. However, Tax on cement purchased from unregistered person shall be paid @ 28% under RCM, and on capital goods under RCM at applicable rates.

Development rights/ TDR/ JDA etc • By land Owner to developer. • (a) Exempted if the Flats are sold before completion. • Taxable if the flats are sold after completion. • Tax Rate 1 %/5%.

JDA • Developer has to collect GST from land owner. • Time of supply. : - Date of completion.

Thank You