GST (Good & Service Tax) on property in Maharashtra Under GST, a single tax rate of 12% is applicable on properties under construction while GST is not applicable on completed or ready to sale properties which was the case in previous law.
Current GST Rates In Maharashtra:-
GST rate on real estate With the intent to simulate demand amid a prolonged slowdown, the government has reduced the GST rate on property transactions significantly. This could potentially lower the buyers’ pay-out by 4%-6% on the overall purchase, believe experts.While the new tax rate without input tax credit (ITC) will apply on all new projects, builders were given a one-time option to pick between the old and the new rates by May 20, 2019, for their ongoing projects. This offer was valid only for projects which were incomplete as on March 31, 2019. The government’s decision came, after the developer community raised concerns on the tax liability in the absence of ITC.
|Property type||GST rate till March 2019||GST rate from April 2019|
|Affordable housing||8% with ITC||1% without ITC|
|Non-affordable housing||12% with ITC||5% without ITC|
What is affordable housing as per GST: –
According to the government-determined definition, housing unit’s worth up to Rs. 45 lakhs qualify as affordable housing. However, the unit must also conform to certain measurements. A housing unit in a metropolitan city qualifies to be an affordable house, if it costs up to Rs. 45 lakhs and measures up to 60 square metres (carpet area). The Delhi-National Capital Region, Bengaluru, Chennai, Hyderabad, the Mumbai-Mumbai Metropolitan Region and Kolkata are categorised as metropolitan cities. A housing unit in any other city barring the ones mentioned above in India, qualify to be an affordable house, if it costs up to Rs. 45 lakhs and has up to 90 square metres of carpet area.
Stamp Duty: –
Stamp duty is a legal tax payable in full and acts as an evidence for any sale or purchase of a property. The levy of stamp duty is a state subject and thus the rates of stamp duty vary from state to state. The Centre levies stamp duty on specified instruments and also fixes the rates for these instruments. (Current Stamp Duty Rates is 5% 6% & 7%) state Government will change the rates as per market situation to give the boost to real estate market.
Registration is 1% if property consideration value is below 30 lakhs and Rs 30,000/- is fix on Property consideration value is above 30 lakh. Registration is extra amount which we need pay along with stamp duty while registering any property document in registrar office.
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