GST on Under construction property, Mumbai region

On of senior citizen has purchased residential property on 680 sqft in Mumbai region, total agreement value if INR 49,50,000/- out of which he has paid INR 10,00,000/- before July 2017 and more INR 31,00,000/- from Aug - 2017 till date.
A) Could you please help with Service Tax/GST calculation for the above payment?
B) Also I have heard that GST will get reduced further after April 2019, please guide.
C) Is GST rate varies for Senior citizen?


May I get reply on my query? its been pending since 16 days.


Hi Ashwin,

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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BB Expert

Thanks for information, during research I have come across below finding, may be useful for other viewer.

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