Is GST applicable on immovable property?

Is GST applicable on sale of immovable property?

Referring to para 5 of Schedule II of the CGST Act renting of any immovable property as a business is liable to taxed under GST at the rate of specified time to time by the GST Council; currently at 18%.

Is GST applicable on sale of flat?

However, under GST a single rate of 12% is applicable on under construction properties whereas no GST is applicable on completed or ready to sale properties only if the Completion Certificate (CC) has been issued. … However, ITC benefits will not be available under the new tax rate policy.

Is GST applicable on sale of land?

Land is an immovable property. As per Schedule III of the CGST Act, land sale is neither considered a sale of goods nor a supply of services. The sale of land attracts stamp duty only. Sale of land does not come under the purview of GST and is not liable to pay GST.

Who pays GST builder or buyer?

4.5% of Service Tax is applicable on the invoices raised or consideration paid before the 15 July, 2017. However, payment made by the buyer to the builder on or after 1st July, 2017 against invoices issued on or after 18 July, 2017 shall attract GST @ 12%.

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Is ITC available for GST paid on a property purchase?

No ITC is available for goods/services for construction of an immovable property on his own account. Even if such goods/services are used in the course or furtherance of business, ITC will not be available.

What is the GST rate for Works Contract?

GST Rate on Works Contract

Description HSN Code GST rate
Works contract mostly involving earth work to government 9954 5%
Oil exploration works contract (construction) 9954 12%
Works contract by sub contractor to main contractor (construction) who in turn provides above services to the government 9954 12%

How can I avoid paying GST on my property?

If you’re trying to avoid paying GST on your property development, the Margin Scheme is an effective way to minimise the amount of GST you’re likely to pay. Under the Margin Scheme, the ATO only requires you to pay GST on the profit margin of the sale.

Which tax is not merged with GST?

-Entry Taxes and toll: State levies road tax, toll tax and environmental tax and it has not been brought under GST.

Can residential property be used for GST registration?

Yes, any address can be provided as the registered office address for this purpose. Keeping the infrastructural needs in mind, if the residential place is a convenient option for you, it can work as registered address.