GST on under construction flat
Dear Sir/Mam,
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Dear Sir,
I booked a 2BHK under construction flat in Patna (Bihar) on September 2018 with carpet area 850 sqft (Super built-up area 1060 sqft). As per government it is coming in affordable housing and As per government GST was for affordable housing is 8% in September 2018 but builder is forcedly asking to pay 12% other wise they will not handover flat to me. kindly do the needful. Please ask me If you required more details. i raise a complain to GST help desk and i received replay as below. please advise.
We received your support request, and we understand that you want to confirm about the GST rate admissible on under construction property under PMAY.
This is to clarify that payments made by the buyer to the builder on or after 1st July, 2017 against invoices issued on or after 1st July, 2017 shall attract GST at the rate of 12%. but The third recommendation of the Council is to include houses constructed for “Economically Weaker Section (EWS)” under the Affordable Housing in partnership(PMAY)under the concessional rate of GST of 8%
(effective rate after deducting value of land). This will support construction of houses up to 30 sqm carpet area.