I have read about
affordable housing GST in my finance classes. Affordable housing is related to the real estate sector.
The GST Council has provided certain concessions and benefits for affordable housing. It is to promote the government's objective of providing housing for all.
Affordable housing projects are eligible for a concessional GST rate. The GST rate applicable to affordable housing is 1%.
The carpet area for affordable housing units is capped to a certain square footage.
The Builders and developers undertaking projects who meet the criteria for affordable housing are eligible for the concessional GST rate.
Builders are not allow to claim full ITC on the inputs used in the construction. This is the overview of
affordable housing GST rate
.
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In 2015 the government of India decided to give the real estate industry a boost and came up with a housing for all scheme. If you didn’t know yet, affordable housing attracts lower GST which is great relief for home buyers. But what is affordable housing as per GST? What is the criteria to determine affordable housing? If you are struggling to answer these questions then I am here to help you.
Definition of affordable housing under GSTSo the affordable housing criteria under GST differs on the basis of metro cities and other cities. Here is what you must know about:
What affordable housing under GST for metro cities?In metropolitan cities, properties below Rs. 45 lakhs with 60 sq meters carpet area will fall into the category of affordable housing.
What is affordable housing definition GST for non-metro cities?In non-metropolitan cities, properties below Rs. 45 lakhs with 90 sq meters carpet area will fall into the category of affordable housing.
Currently GST on affordable housing is calculated at 1% while other properties attract 5% GST.
Read more How to calculate GST on flat purchase 2021 How much GST on Home Loan is Applicable How to calculate GST on under construction propertyShifting, House?
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Lowest Price Quote✔
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Professional Labour✔
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Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
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Authors Of The Question
What is Affordable Housing as per GST?
Shiv
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3 Year
2021-09-21T16:31:49+00:00 2023-11-30T14:04:37+00:00Comment
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