Finance ministry Saturday said GST will not be levied on buyers of real estate properties for which completion certificate is issued at the time of sale.
However, Goods and Services Tax (GST) is applicable on sale of under-construction property or ready to move in flats where completion certificate is not issued at the time of sale, it said.
The ministry also asked the builders to reduce the prices of properties by passing on the benefit of lower GST rate.
“It is brought to the notice of buyers of constructed property that there is no GST on sale of complex/ building and ready to move in flats where sale takes place after issue of completion certificate by the competent authority,” the ministry said in a statement.
GST is applicable on sale of under construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale, it said.
It further said affordable housing projects like Jawaharlal Nehru National Urban Renewal Mission, Rajiv Awas Yojana, Pradhan Mantri Awas Yojana or any other housing scheme of state governments attracts 8 per cent GST, which can be adjusted by the builders against its accumulated input tax credit (ITC).