- I stay in Noida and my property is in Delhi. I have rented out my Delhi property to a Delhi based company. Do I need to pay GST? Monthly rent is Rs.1,25,000 [Simar from Noida]
Answer:
As per schedule 2 of the CGST ACT, renting out of immovable property shall be treated as a supply of services
Renting out a residential property for residential purpose is exempt from GST. Any other type of lease of renting out of immovable property shall attract 18% GST. However, registration under GST is not required to be obtained if total value of services does not exceed Rs. 20 Lakh (10 lakh for special states).
Since your total rental income is Rs.15,00,000, you neither need to get registered nor need to pay any GST.
- I have sold my flat in Noida for Rs. 1.1 Cr. Do I need to pay any GST?[Rakesh Bhardwaj from Ghaziabad]
Answer:
Ready to move in properties shall not attract GST.The construction of a complex building, civil structure, or a part thereof, intended for sale to a buyer, wholly or partly, is subject to 12 per cent tax with full input tax credit. Sale or resale of ready to move property does not attract GST.
- The developer from whom I am buying flat is charging GST. Can I take refund of GST?[Suryaprakash Chandra from Gurgaon]
Answer:
I assume that you are the ultimate customer who is not registered under GST. You are not eligible to get any benefit of GST.
- What is the GST rate on construction services?[Pankaj from Pankaj Realty solution, Gurgaon]
Answer:
The construction of a complex building, civil structure, or a part thereof, intended for sale to a buyer, wholly or partly, is subject to 12 per cent tax with full input tax credit. GST rate on affordable housing projects is 8%
- Is there any concession in rate of GST for affordable housing scheme?[Rakesh Tiwari, Delhi]
Answer:
GST rate on affordable housing projects is 8%. However, the government on February 7, 2018, asked builders not to charge any GST from home buyers, as the effective GST rate (i.e. 8%) can be adjusted against the input credit. The builders can levy GST on buyers of affordable housing projects, only if they reduce the apartment prices.
- I am buying flat in Noida on resale basis. The seller is asking me to pay GST. Do I need to pay GST?[Chandra Prakash Maurya, Noida]
Answer:
Selling or buying of property does not attract GST. Neither you nor the seller is required to pay any GST since you are buying a ready to move property.
From June 1st 2013, when a buyer buys immovable property (i.e. a building or part of a building or any land other than agricultural land) costing more than Rs 50lakhs, he has to deduct 1% TDS when he pays to the seller.
- Is there any GST on interest charged by banks on home loans?[Prashant, Noida]
Answer
When we take loan, bank charges processing fees, valuation charges and other charges upfront. Though interest on loan is out of purview of GST, on all other amounts GST is payable. Currently, it is taxed at 18%. GST is not applicable to prepayment fee for an MCLR-linked mortgage, but prepayment fee for a fixed rate mortgage is taxed 18%. The borrower is taxed at 18% on any charges recouped by lenders.
- Me and my wife are working in MNC. We invest our 30% income in real estate. We don’t have any other savings. Rates of properties are getting down. Do we need to change our investment strategy?[Manik Anand, Gurgaon]
Answer
Just saving and investing in the real estate is not enough. One needs to have a systematic plan in place to be able to make the most out of their investments. Investing in the right instruments is equally important.Investing our hard-earned money is a savvy method to save for large and small expenses. A basket of different instruments is called a portfolio. Have a portfolio that is balanced. Make your own balanced portfolio having various instruments after considering your future goals and risk appetite.
- If I buy home, how much GST do I need to pay?[Anurag Mittal, Noida]
Answer
Ready to move property does not attract GST. However, if you are planning to purchase under construction property, the builder may charge 12% GST to you.
- What is the rate of GST on brokerage charge on property transactions. Is there any exemption limit?[Durga Das Gupta, Noida]
Brokerage is a service and will cover under the provision of GST. There is 18% GST rate on brokerage on transaction value. However, you are liable to pay GST if the total valueof supply exceeds Rs.20 lakh.
- I have three residential flats which are not rented (i.e. vacant) since long. Do I need to pay any GST?[Maya, Hapur]
GST is payable on transaction value. Since there is no transaction, GST is not payable. Further, GST is payable only when the tax payer is registered. Registration is compulsorily required when value of supply exceeds threshold limit.
- I have invested in a studio apartment which is still under construction and I am paying loan EMI. Is there any GST obligation on me? [Meena, Indirapuram]
Answer
In this case, builder will charge GST since it will be considered that he is providing construction services which is taxed at 12%. Paying loan EMI has no relation with GST.
- Me and my four friends have bought a piece of land on which we are planning to construct four residential flats and sale those flats to individual buyers. What do I need to take care from taxation point of view?[Bhanu Pratap Singh, Varanasi]
Answer
There are two types of taxation involved. Direct Tax and Indirect Tax. From the point of view of direct Tax, you need to ensure that proper bills of expenses are duly kept which shall be necessary to compute your income. You need to get PAN for your business as association of persons.
From indirect tax point of view, if the aggregate value of total supply exceeds the threshold limit, you need to get registered as AOP and need to pay GST on transaction value.
- 14. What is the tax structure under GST? [Rakesh Ranjan, Varanasi]
There is a four-tier tax structure – 5, 12, 18 and 28 %. With 28% slab, a cessis also imposed on certain luxury and demerit goods. some other rates are also prevailing, for e.g. 3% on jewellery, 0.25% on diamond.