The Goods and Services Tax (GST) Council met for its 33rd meeting and slashed GST rate on under-construction residential properties and the affordable housing projects. The revised rates will be applicable from

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	01st April 2019
B	01st May 2019
C	01st August 2019
D	31st March 2019

Explanation:

Detailed explanation-1: -GST rate on construction services and materials. In general, the GST rate on construction services is 18%. However, this rate varies in the construction sector as for affordable housing; it is 1%. Further, the input service and construction materials rate is 18%, while other segments have 5%.

Detailed explanation-2: -Applicability of GST on Redevelopment of Societies In the case of redevelopment projects, the builder pays his entire GST liability on the gross amount he receives for selling the flats to an independent buyer.

Detailed explanation-3: -Rate of tax applicable for services of construction of affordable residential apartments is 1.5% and 7.5% for services of construction of residential apartments other than affordable residential apartments.

Detailed explanation-4: -Is GST applicable to the purchase of a new ready-to-move flat? No rate of GST applies to completed flats, whether we are talking about apartments or homes that have been constructed. This is because a finished project, such as an apartment or villa ready to be moved into, is neither a good nor a service.

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