![]() ![]() The 33 rd and 34 th GST Councilmeeting on 24th February 2019 and 19 th March 2019, in its Press Release (‘PR’) recommended to implement, from 1st April 2019, the revised rates for residential properties as under: 1.3 Reconsideration of rates by 33 rd and 34th GSTC meeting Globally, there are different practices, for taxation of real estate, as few countries have property taxes (similar to stamp duty in India) whereas most others have included real estate under the ambit of GST / VAT. Stamp Duty also creates cascading impact on real estate sector.Įffectively, the Real Estate sector is burdened with two taxes GST plus Stamp Duty. Additionally, it is pertinent to note that real estate transactions are subject to Stamp Duty. In comparison to erstwhile Service 4.50%) and State VAT 1%) regime, GST rate of 12% was much higher (in-spite of increased credit flow). Concessional rate such as 8% was applicable for units qualifying for Affordable Housing. Out of these aforesaid, upto 31 st March 2019, GST at 12% was leviable (after 1/3 rd deduction towards land value) on ‘supply of real estate before completion’. Real estate sector will, typically, comprise of following transactions:ġ.2 Rate of GST on real estate before 31 st March 2019 Real Estate – Issues from 1 st April 2019 1.1 Types of real estate transactions
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