GST revision for PMAY eligibility
2 years ago
Hi,
I would like to know whether the GST revision of 12% to 8% for PMAY eligible holders which was applied previously, is applicable for the current 5% and reduce it to 1%.
Here is the need for this question.
I booked a under construction flat with a builder in 2018 and I got the PMAY subsidy and gst revision from 12% to 8%. The project is still in construction. Recently as per builders options, I swapped my flat to a different project which was launched in 2020, for almost double the previous amount . The swapping is completed. The GST of this new project is 5%. I was asking for 4% gst revision from 5% to 1% as previously applied from 12 to 8%. The builder doesn't have clarity whether 5% to 1% is applicable. So please confirm whether 5% to 1% is applicable for PMAY holders.
For residential (real estate) transactions, there is a new GST rate for flat purchases:
1. GST on a flat purchase of residential properties that are not part of the affordable housing segment will be paid at 5% without an input tax credit (ITC).
2. Residential properties that fall under the affordable housing category will be subject to a 1% GST without an ITC.
If a housing unit costs less than Rs 45 lakhs in any Indian city, it is considered affordable housing. According to the government's criteria, housing units costing up to Rs 45 lakhs qualify as affordable housing. However, the unit must meet certain requirements.
If a housing unit in a city costs less than Rs 45 lakhs and has a floor area of less than 60 square metres, it is classified as an affordable dwelling (carpet area).
Delhi-National Capital Region, Bengaluru, Chennai, Hyderabad, Mumbai-Mumbai Metropolitan Region, and Kolkata are examples of metropolitan cities.
If a housing unit costs less than Rs 45 lakhs and has less than 90 square metres of carpet area in any Indian city other than those listed above, it qualifies as an affordable house.
Thank you