GST on affordable housing

Affordable housing attracts GST at 1% on total value charged upto Rs 45 lakhs (or 1.5% on two thirds value of an affordable housing flat).

Affordable housing means a flat with carpet area of 60 sq mtrs and value upto Rs 45 lakhs in Metro cities like Bangaluru Delhi NCR Hyderabad Chennai Kolkata and Mumbai.

In cities, towns other than Metro Cities, affordable housing would have carpet area of 90 sq meters and maximum value is limited to Rs 45 lakhs only.

That means, flat would not be called affordable housing flat if carpet area crosses 60 sq meters or 90 sq meters in Metro and non Metro cities respectively or on crossing prescribed value of Rs 45 lakhs and gst would be 5% on gross amount charged on such flats.

Please refer to Notification 3/2019-CTR issued by the Government for details.