Government of India has released Frequently Asked Questions (FAQs) on real estate dated May 7, 2019, regarding the new GST rate structure notified for real estate sector effective from April 01, 2019.
Following are some points which are covered under the FAQs:
1. What is a Residential Real Estate Project?
A “Residential Real Estate Project” means a “Real Estate Project” in which the carpet area of the commercial apartments is not more than 15 percent of the total carpet area of all the apartments in the project.
2. What is an affordable residential apartment?
Affordable residential apartment is a residential apartment in a project which commences on or after April 01, 2019, or in an ongoing project in respect of which the promoter has opted for new rate of 1% (effective from April 01, 2019) having carpet area up to 60 square meters in metropolitan cities and 90 square meter in cities or towns other than metropolitan cities and the gross amount charged for which, by the builder is not more than forty five lakhs rupees. [Cities or towns in the notification shall include all areas other than the metropolitan city as defined, such as villages.]
In an ongoing project in respect of which the promoter has opted for new rates, the term also includes apartments being constructed under the specified housing schemes of Central or State Governments. [Metropolitan cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (the whole of MMR) with their geographical limits prescribed by Government.]
Complete FAQs can be accessed at: http://www.a2ztaxcorp.com/wp-content/uploads/2019/05/FAQ-Real-estate-sector-0705.pdf