new GST rate for flat purchase for residential (real estate) transactions:
- On residential properties that are not part of the affordable housing segment, GST charges on a flat purchase will be paid at 5% without an input tax credit (ITC).
- Residential properties included in the affordable housing segment will be subject to a 1% GST without an ITC
A housing unit in any Indian city qualifies as an affordable house if it costs less than Rs 45 lakhs.
Housing units worth up to Rs 45 lakhs qualify as affordable housing, according to the government’s criteria.
The unit must, however, meet certain specifications. A housing unit in a metropolis qualifies as an inexpensive dwelling if it costs less than Rs 45 lakhs and has a floor area of less than 60 square metres (carpet area).
Metropolitan cities include the Delhi-National Capital Region, Bengaluru, Chennai, Hyderabad, Mumbai-Mumbai Metropolitan Region, and Kolkata.
A housing unit in any Indian city other than the ones listed above qualifies as an affordable house if it costs less than Rs 45 lakhs and has less than 90 square metres of carpet area.
