Is Real estate business (buying land, develop it as vacant sites and sale) liable for GST? If not liable RCM provisions applicable to this dealer or not?

Reply— The new GST rates (effective) on Real estate sector are 1% and 5%. 

New GST rates (1% and 5%) effective from 01-04-2019 are applicable to construction of residential apartments in a project which commences on or after 01-04-2019 as well as in on-going projects. 

1% GST — It is applicable on affordable hosuing project.

Affordable residential apartment is a residential apartment in a project which commences on or after 01-04-2019, or in an ongoing project in respect of which the promoter has opted for New rate of 1% (effective from 01-04-2019) having carpet area upto 60 square meter in metropolitan cities and 90 square meter in cities or towns other than metropolitan cities and the gross amount charged for which, by the builder is not more than forty five lakhs rupees. 

5% GST — It is applicable on project in which the carpet area of the commercial apartments is not more than 15 per cent. of the total carpet area of all the apartments in the project. 

Conditions for the new tax rates— 

(a) Input tax credit shall not be available,

(b)  80% of inputs and input services (other than capital goods, TDR/ JDA, FSI, long term lease (premiums)) shall be purchased from registered persons. On shortfall of purchases from 80%, tax shall be paid by the builder @ 18% on RCM basis. However, Tax on cement purchased from unregistered person shall be paid @ 28% under RCM, and on capital goods under RCM at applicable rates.

In case you are dealing in sale and purchase of land only, no GST will be applicable on it.