Ans: The general GST rate on construction services of 18% is applicable and to be paid for by the promoter of the real estate project on reverse charge basis on all inward supplies if the inward supply is short of 80% of total value of inputs and input services. Homebuyers are liable to pay GST of only 5% for residential properties and 1% for affordable housing projects when purchasing under-construction properties such as flats, apartments and bungalows. The GST is also applicable on the purchase of developable plots. Do note that GST on flat purchases is not applicable on projects that have received a Completion Certificate before the purchase.
