Our government has freshly made a great decision by changing the GST rates in the real estate market, which have been made effective from April 1, 2019. It is unquestionably an essential issue for the realtors who have taken GST registration and the buyers who have spent great sums in the real estate ventures. All around significantly, the developers were given a one-time choice to choose from the old and new GST rates on real estate ventures till a predefined time allotment. Presently, 2 different GST rates are appropriate on real estate ventures, one with ITC advantage and the other devoid of an Input tax credit.
Here are some very important things that you should not neglect while putting your resources into a Housing Project.
Private Real Estate Project, also called Residential Real Estate Project or RREP is primarily a Real Estate Project that has the total area of the housing condos up to 15% of the complete floor covering a zone of the whole structure in that venture.
According to the new mandate,
According to the GST guideline, an on-going venture means the one that fulfills the underneath criteria:
These are the approved gatherings who issue the commencement certificate for a housing venture:
Development of a task will be considered to have been begun at the latest 31st March 2019, if the earthwork for site readiness for the venture has been finished, and exhuming for the establishment has begun at the very latest the 31st March 2019.
According to the new law, a promoter or developer needs to buy in any event 80% of the complete estimation of input services, from providers having GST registration.
To determine this edge, the estimation of the accompanying services is to be rejected