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Property Related Laws Uttar Pradesh Department of Housing and Urban Development Real Estate (Regulation and Development) Act, 2016

Clarification on GST Rates for Real Estate Projects in Uttar Pradesh

08-Jan-2025 | 212/UP RERA/2024-25

A request was made to the Uttar Pradesh State Tax Department for clarification on the applicable Goods and Services Tax (GST) rates concerning the allotments to be deposited by promoters (developers) of real estate projects. In response, the State Tax Department issued a letter dated October 1, 2024, which provides clarity on the matter. Key Points: 1. Notified GST Rates for Real Estate Projects: The letter references the GST rates applicable under the following notifications: i. Notification No. 11/2017 Central Tax (Rate) dated June 28, 2017 ii. Notification No. 3/2019 Central Tax (Rate) dated March 29, 2019 2. GST Rate Changes: GST rates may be subject to change by the GST Council. Future changes to the GST rates for real estate may be made by the Council, which should be monitored for updates. 3. GST Rates for Ongoing Projects (Pre-01.04.2019): For real estate projects that were ongoing before April 1, 2019, promoters and developers may submit a manual application to the authorized tax officer under the GST Act. This will allow them to select the applicable GST rates. If no such application is submitted, the GST rates applicable from April 1, 2019, under Notification No. 3/2019 will apply. This means the newer rates will be enforced if no action is taken by the promoters. If a promoter has already opted for the older GST rates for a project, they cannot switch to the new rates for that particular project. Action Required: Promoters and developers are advised to ensure that they take necessary actions in accordance with the above guidelines to ensure compliance with the applicable GST rates for their real estate projects. Monitoring future updates from the GST Council is also essential for staying informed about rate changes.

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