♦ New rates have come into force w.e.f. 1st April 2019.

♦ Rates are as follows-

♦ Affordable Housing:

1. Carpet area must be 60 Sq. Mt or less in the cities of Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata & Mumbai.

2. Carpet area must be 90 Sq. Mt or less in other areas.

3. Gross consideration must not exceed Rs. 45,00,000

♦ Rates are as follows-

Projects New Rate Net New Rate (1/3rd Deduction for land) Net old rate
Affordable housing Projects 1.5% 1% 8%
Other Housing 7.5% 5% 12%
Commercial Projects where their carpet area not exceeding 15% of Total Carpet area 7.5% 5% 12%
Other Commercial Projects 18% 12% 12%

♦ Under new system, supplier can not have any ITC & the previously accumulated ITC need to be disclosed as ineligible ITC

♦ For new projects, it is mandatory to follow this new regime.

♦ For continuing projects, there is an option to go with the previous regime.

♦ If chooses to go with the previous system, builder has to fill the prescribed form on or before 10th May 2019. But the invoice has to be in the chosen regime from 1st April 2019 onwards.

♦ Minimum of 80% of raw material,excluding grant of development rights, lease of land, electricity, diesel, petrol has to be bought from the registered suppliers (includes reverse charge mechanism)

♦ In case there is any shortfall, GST on the shortfall need to be paid at 18% on RCM basis.

♦ However,GST on cement purchased from unregistered supplier needs to be paid at 28% on RCM

♦ 100% of capital goods have to be sourced from the registered suppliers. If there is any supply from unregistered suppliers, GST on same has to be paid at the prescribed rates on RCM basis.

♦ Project wise details of all the purchases need to be maintained & submitted electronically within 30th June of subsequent year.

Author Bio

Name: Akash VR
Qualification: Student - CA/CS/CMA
Company: Pramod and Darshan Chartered Accountants
Location: Bengaluru, Karnataka, IN
Member Since: 24 Dec 2019 | Total Posts: 1

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4 Comments

    1. TG Team says:

      1. Carpet area must be 60 Sq.Ft or less in the cities of Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata & Mumbai.

      2. Carpet area must be 90 Sq.Ft or less in other areas.

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