Real estate is one of the most complex GST sectors. The rates vary — 1% for affordable housing, 5% for other residential, 18% for commercial. ITC is restricted for residential projects. TDR and JDA transactions have conflicting judicial interpretations. A CA firm with real estate expertise ensures that these issues are managed correctly.
This article explains the GST advisory services for real estate developers.
GST Rate Advisory
- Affordable housing: 1% without ITC for apartments meeting carpet area and value conditions.
- Other residential: 5% without ITC.
- Commercial: 18% with ITC.
- 80% procurement condition: Ensuring compliance.
ITC Advisory
- Blocked credits: ITC on works contract for immovable property.
- Plant and machinery exception: Assessing ITC eligibility.
- Mixed projects: Apportioning ITC between affordable and other units.
TDR and JDA Advisory
- Exemption analysis: Whether TDR/FSI qualifies for exemption under Notification 4/2019.
- RCM liability: Whether the developer must pay GST under RCM.
- Judicial developments: Monitoring conflicting High Court rulings.
Conclusion
Real estate GST advisory requires expertise in rate classification, ITC restrictions, and development rights. A CA firm ensures that the project is structured tax-efficiently and compliantly.
At Anuj Desai & Associates, we provide GST advisory services for real estate developers and construction companies. Our team handles rate classification, ITC optimisation, and TDR/JDA structuring.
For a confidential consultation, contact us at office@anujdesaiassociates.com or call 9619456656. Visit our website at https://anujdesaiassociates.com or connect with our founder on LinkedIn at linkedin.com/in/ca-anuj-desai-122547230.