Once, when I was reselling my under construction property, I was wondering about GST on resale of under construction property
. I got help regarding this from my neighbor who is a lawyer.
He told me that
the
GST on the resale of an under-construction flat from the first owner depends on whether the property is being sold before or after the issuance of the completion certificate. Moreover, you must check below points:
- Sale Before Issuance of Completion Certificate:
If you are selling the property before the issuance of the completion certificate, it is a supply of under-construction property. You are required to pay a 5% GST for under-construction residential properties
- Sale After Issuance of Completion Certificate:
If you are selling the property after the issuance of the completion certificate, it is a sale of a completed property. This sale of a completed property is completely exempt from GST.
- Stamp Duty and Registration Charges:
While GST is not applicable if there is a sale of completed property, buyers would still be required to pay stamp duty and registration charges during the resale process.
I have tried to explain about
GST on resale of under construction property
what I have learned from my neighbor.
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- Additional taxes applicable.
- Difference amount that need to be pay.
- VAT applicability at the time of purchase.
- You don’t need to pay any additional amount at the time of resale of flat.
- Also, there is no such difference amount that need to pay by you.
- To have clarification regarding the VAT applicability, kindly contact to the state tax authority.
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Hey buddy,
GST on resale flat is 12% in case it is under construction. However, GST doesn’t apply to the resale of an old property or the sale of a completed property (where a completion certificate has been issued).
From April 2019, the GST Council cut the tax rates from 12% to 5% on residential properties and from 8% to 1% for the affordable housing segment. However, no ITC benefits would be available under the new tax rate policy.
I hope you like my answer on GST on resale of flat that is under construction.
Thanks!
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Authors Of The Question
GST for resale of under construction flat from first owner
Sanjay R
1322 Views
4 Answers
3 Year
2021-11-15T10:53:49+00:00 2023-09-21T16:09:32+00:00Comment
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