10 May 2019Posted By: Mudit Handa

Government Extends Deadline to opt for Old GST rate on Real Estate

The 34th GST council meeting had proposed the new GST rates applicable to the Real estate sector. The government had given approval to the new GST rates on the housing sector and had made them mandatory from 1st April 2019.

In this regard, the real estate builders, as well as the developers having GST registration, were provided with a one-time alternative to opt for one of the 2 tariffs, either the old or the new GST rates on housing.

The Ministry of Finance has also set the deadline for opting for the previous GST rates on real estate of 10th May 2019. The Government has now extended the due date to opt for the old GST rates on real estate till 20th May 2019


1. What will the old GST rate on real estate mean?

The 33rd GST Council meeting had made it very clear how the previous & revised GST rate would affect the real estate projects.

  • If the real estate developers having GST registration choose the old GST rate, i.e. 12% on under construction projects, they will be allowed the input tax credit (ITC).
  • However, if they opt for the new GST rate i.e. 5%, they won’t be allowed the ITC benefit.
  • Likewise, this rule applies to the affordable housing segment. If the old GST rate of 8% is selected, ITC shall be allowed, whereas if the revised Rate of 1% is selected, ITC shall not be allowed.

​This can be well understood from the chart given below-


Old GST rate (%)

New GST rate (%)

Affordable housing apartment



Other housing apartments



Input Tax Credit


Not allowed


2. What if old GST rate not chosen till May 20?

The Government has now further extended the due date to choose between the old & new GST rates on real estate till 20th May 2019. The real estate developers having GST registration are supposed to make a choice between previous & revised rates latest by 20th May, otherwise, they will have to shift to the new GST rates.

Also, read the 

If you require any sort of guidance with respect to GST registration, please feel free to contact our business advisor at 8881-069-069.

Now you can also Download E-Startup Mobile App and Never miss the latest updates relating to your business.  

Give a Reply

Fill up the form

E-startupIndia Mobile App


Download our free Android App and get realtime update on your order status.
Easily connect with our professionals handling your order over chat & mobile.
Never miss business compliances due date with advance notifications.

Get E-startupIndia in your mobile

Why Choose Us

e-startupindia member of GOOGLE

Serving business owners with an Average 4.8+ Google Rating.

e-startupindia certified #AxixBank

Trusted by Axis bank to cater its clients all licensing & compliance needs.

e-startupindia NG Alliance Partner

Providing lending solutions for business needs with NeoGrowth.

e-startupindia Google Partner

Open Neo bank account worldwide & provides cross-border remittance solutions.

e-startupindia member of CII

E-startupindia is a Proudly Member of Confederation of Indian Industry.The CII is a premier business association in India which works to create an environment.

e-startupindia certified #Etstartupindia

E-Startup India is duly certified under GOI's Startup India scheme and is renowned for our tech-driven solutions for business & legal services requirements for MSMEs.

e-startupindia Google Partner

E-Startup India is a Google Partner, which implies we are rigorously involved in assisting SME businesses to market their presence in the digital world.

Popular Services

Private Limited Company | Public Limited Company | One Person Company | Limited Liability Partnership | Partnership Firm | Sole Proprietorship Firm | Section 8 Company Registration | USA Company Registration | UK Company Registration | UAE Company Registration | Singapore Company Registration | Company Registration Hong Kong | Import Export Code | IEC Modification | AD Code Registration | Spice Board Registration | US FDA Certification | ISO 9001 2015 | ISO 14001 EMS | ISO 22000 FSMS | ISO 27001 ISMS | ISO 50001 Energy Management | ISO 45001 | ISO Surveillance | ISO Certification | MSME Registration | FSSAI Registration | Shop Establishment Registration | Barcode Registration | Coffee Board Registration | Startup India Certificate | ZED Certification | Trademark | Trademark Objection Reply | Trademark Opposition | Trademark Hearing | Trademark Formality Check Fail | Website Development | Patent | Copyright | Design Registration | Business Name Suggestion | Logo Designing | Trademark Assignment Service | GST Registration | GST Modification | GST Cancellation | GST Return Filing | GST Invoice Software | UIN Registration | Income Tax Return | Income Tax Notice | Income Tax Refund | Income Tax Assessment | TDS Return Filing | Form 15CA / CB | Professional Tax Registration | 12A and 80G Registration | FCRA Registration | CSR Registration | Project Report | Pitch Deck | Seed Fund Startup India | Accounting for Ecommerce | Virtual cfo services in india | Bookkeeping & Accounting | Private limited Company Annual Compliance | Form INC-22A | Form 15CA / CB | Company Strike Off | Commencement of Business | Fssai annual return | Online CA Consultancy | Income Tax Return Filling | LLP Annual Compliances | Form DIR-3 KYC | Virtual Office for Company Registration |


  • e-startupindia South Asia's Leading Multimedia News Agency
  • Business Standard
  • e-startupindia Outlook
  • e-startupindia Htmedia
  • e-startupindia Yahoo News
  • e-startupindia New Delhi Times
  • e-startupindia India.com
  • e-startupindia IBTN9