GST in Real Estate

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GST in Real Estate

March 25, 2021

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GST in Real Estate

Goods and Services Tax (GST) in Indian Real Estate-

What is GST (Goods and Services Tax)?

Real Estate (Regulation and Development) Act (RERA) on July 1, 2017, brought major reforms tax reforms in Indian real estate sector when they introduced Goods and Services Tax (GST) in Indian Real Estate.

Goods and Services Tax (GST) is a unified tax for all the indirect taxes that were prevalent in real estate industry like the Service Tax, VAT, Octroi, surcharges, central excise tax and other indirect taxes of the similar nature. Thus, making the taxation system in real estate simpler and efficient.

GST taxation slabs –

Criteria	Affordable Home	Under Construction	Ready-to-move
Pricing	Below Rs 45 lacs	Above Rs 45 lacs	–
GST Applicable	1%	5%	Not Applicable

Implications of GST on homebuyers

The new tax law aims to increase efficiency and transparency by removing multiple taxes and reducing the procedure and applications.

Changes in taxation after GST-

For-

Sale in the state

(Service Tax + VAT) TO (CGST+SGST)

Intra state sales

(Service TAX+ Central Sales Tax) TO (IGST)

GST implications in Under Construction and Ready-to-Move properties is explained in Taxation relating to Real Estate.

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PMAY

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Important Documents and Certificates

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Tax related to Lands and Plots

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All about Capital Gains

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Tax in Real Estate

Major taxes related to Real Estate in India are Stamp Duty, Registration and the newly implemented GST (Goods and Services Tax) which integrated all indirect taxes like Service tax, VAT etc. under itself.