IMPACT OF GST ON REAL ESTATE

SL. Particulars Remarks Applicable GST

No.
01 Completed Flats/Property or Ready To Move In Refer Note 1 Nil
Properties
02 Under Construction Property :
a Property on which completion certificate Builder got the Nil
issued completion certificate
before you purchase it,
then it is considered as
ready-to-move-in
property
b Payment for property made by buyer in full Service Tax @ 4.5% No
before 1st July 2017 was chargeable
c Part payment for property made by buyer Service Tax @ 4.5% GST @12% (effectively) will be
before 1st July 2017 was applicable on the applicable on part payment
part payment made after 01st July 2017
before 01st July 2017
d Payment for property made by buyer in after - Gst @ 12% (18% less 1/3 for
before 1st July 2017 Land)

Note 1
Whether Flats/Properties are considered as Goods ?

Goods u/s 2(52) of GST Act

“Goods’’ means every kind of movable property other than money and securities but includes
actionable claims ,growing crops, grass and things attached to or forming part of the land which
are agreed to be severed before supply or under a contract of supply.

To be classified as Goods under GST Act, it shall also satisfy the test of Movability. The term
“Movability of property is defined in the section 3(36) of the General Clause Act, 1897 to mean
“Property of every description, except immovable property”.

Section 2(26) of the General Clauses Act “Immovable property” shall include land, benefits to
arise out of land, and things attached to the earth, or permanently fastened to anything
attached to the earth.

Going by the definition of Immovable property u/s 2(26) of the General Clauses Act, Flats are
immovable property and hence not “goods”