The government has cleared the air on the applicability of the Goods and Services Tax (GST) for buildings and ready-to-move-in flats, say real estate experts. With this, secondary market transactions in realty properties with completion certificate are expected to see a spurt.
The government clarified recently that no GST need to be paid by buyers of constructed property — complex/building and ready-to-move-in flats where the sale takes place after the issue of the completion certificate by the competent authority.
However, the GST is applicable on sale of under-construction property or ready-to-move-in flats wherein the completion certificate has not been issued at the time of sale.
“The secondary realty market segment does not attract the GST, so buyers eyeing ready-to-move-in units may certainly evaluate this option rather than paying 12 per cent GST on homes on the primary market,” said Anuj Puri, Chairman, Anarock.