With more clarity on GST, buyers may go for completed properties

Garima Singh 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.

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