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What is the rate of GST applicable on construction of commercial apartments like offices, shops, godowns etc. in a real estate project?||

What is the rate of GST applicable on construction of commercial apartments (work contract)  in a real estate project?

Work contract:With effect from 01-04-2019, effective rate of GST, after deduction of value of land or undivided share of land, on construction of commercial apartments like offices, shops, godowns etc by promoter in real estate project are as under

Description

Effective GST rate (after deduction of value of land)

Construction of commercial apartments in a Residential Real Estate Project (RREP), as explained in below, which commences on or after 01-04-2019 or in an ongoing project in respect of which the promoter has opted for new GST rates effective from 01-04-2019

    5% without ITC on total     consideration.

(work contract)Construction of commercial apartments in a (REP)  Real Estate Project other than (RREP) Residential Real Estate Project or in an ongoing project in respect of which the promoter has opted for old GST rates

  12% with ITC on total consideration.

 Residential Real Estate Project Mean-

A “Residential Real Estate Project” means a Real Estate Project (REP)  ” in which the carpet area of the commercial apartments is not more than 15 % per cent. of the total carpet area of all the project apartments.

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Advocate Birbal Sharma

Education- M.Com, LL.B, DLL, LLM Practice Courts - Rajasthan High Court, Income Tax Appellate Tribunal and Intellectual Property Right Attorney Contact Number- 09785037216 Email ID-advocatebirbalsharma@gmail.com

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Advocate Birbal Sharma

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