The Goods and Services Tax ( GST ) Council has extended the due dates for the realty firms to opt for opting for the new tax rates applicable to them from 1st April 2019.
“The date for exercising the option for residential real estate project to either stay at old GST rate (8% or 12% with ITC) or to avail new GST rate (1% or 5% without ITC) is being extended to 20.05.2019 from 10.05.2019. The Notification to be issued soon,” the official twitter handle of the GST Council tweeted.
The Finance Ministry had lowered the rate of GST on real estate sector on 1st April and given an option to the builders to chose a one-time option of sticking to the old rate or going for the new one.
A few months ago, the GST Council, the upper policy-making body, had suggested a two-rate structure for under-construction flats or ready-to-move-in flats where the completion certificate has not been issued at the time of sale (buyers do not have to pay GST on completed projects).
In the same meeting, the Council had decided to lower the GST on the under-construction houses from 12% to 5% and for affordable housing from 8% to 1% without input tax credit (ITC) benefit.
It prescribes 1 per cent GST for affordable houses and 5 per cent for others. There will not be any input tax credit. The new rates will be applicable to new projects (launched after April 1) and ongoing projects.
