Whether you paid in part or in full, if the payment is made before the rollout of GST regime, then it will not invite any GST tax. However, keep in mind that you will be charged the applicable service tax rate of 4.5 per cent.
For under construction properties, the actual GST rate is 18 per cent. But one-third of this 18 per cent is deemed as the value of land or undivided share of land supplied to the buyer of the property. Hence, GST rate lowers down to 12 per cent on under-construction flats, properties or commercial properties with a full input tax credit.
The GST Council has lowered the GST rate to 1 per cent from 8 per cent for ‘affordable houses’ and to 5 per cent from 12 per cent for other houses. This will be applicable from 1st April 2019.
For the actual calculations, please get the help of your financial planner or legal counsel.
GST is not dependent on the buyer of the property. GST is based on the property that is purchased - whether it is under construction property or completed project.
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