Frequently Asked Questions
It’s complicated because it includes both the value of the land and the value of the construction. The government’s 1/3rd land abatement rule is a way to handle this, as GST only applies to the construction part.
An effective GST rate is the final rate you pay on the total property value after the 1/3rd land abatement has been applied. For example, a standard 5% rate becomes an effective 3.33% rate.
You take the total property value, multiply it by 2/3, and then apply the standard GST rate (e.g., 5% or 1%). Our calculator does this for you automatically.
If a property has received its Completion Certificate, it is considered ready to move and is exempt from GST. This is the main difference from an under construction property.
No, a builder cannot legally charge GST on a property after the Completion Certificate has been issued.
Yes, commercial properties also fall under GST, but they have different effective rates depending on the size of the commercial area.
No, builders are not allowed to claim ITC on the goods and services used for construction after April 1, 2019, so they cannot pass this benefit on to the buyer.
