Purva Northern Lights GST Applicability

Purva Northern Lights GST Applicability is one of the most important things every home buyer should understand before booking an apartment. The apartments in Purva Northern Lights start from ₹1.3 Crores, so GST rules are very clear and fixed as per government norms.

GST Rate on Purva Northern Lights Apartments

The GST rate for Purva Northern Lights depends only on whether the apartment is still being built or is fully ready to move in.

Under Construction Apartments

• If the apartment is under construction, the GST rate is 5%.
• This 5% GST is calculated on the total apartment price.
• In respect of Stamp Duty & Registration Charges, neither of these charges falls under the purview of GST.
• Purva Northern Lights apartments are above ₹45 lakhs, so they do not fall under affordable housing.
• Because of this, the 5% GST is fully applicable.

Ready to Move In Apartments

• If the apartment is ready and has an Occupancy Certificate (OC) or Completion Certificate (CC), then GST is 0%.
• This means buyers do not pay any GST on the apartment value.
• This rule applies only if the OC or CC is received before signing the sale agreement.

GST Applicability – How It Works

GST applicability is straightforward and depends on the apartment's construction status on the booking date.

When GST Is Applicable

• The apartment is still under construction.
• No OC or CC has been issued.
• The sale agreement is signed before project completion.
• GST is charged at 5% on the base price and linked charges.

When GST Is Not Applicable

• The apartment has been entirely constructed.
• An occupancy certificate or Completion Certificate has been issued for it.
• The sale agreement must have been executed after the property was finished.
• There will be no GST charge at all.

GST on Additional Charges

• Car parking charges are included under GST if part of the agreement.
• Clubhouse and amenity charges attract GST with the apartment.
• Advance maintenance paid at booking is usually included under GST.
• Monthly maintenance collected later may attract 18% GST if it crosses the government limit.

Buyer Impact – How GST Affects Your Budget

The buyer impact of GST is mainly related to the total cost planning and home loan value.

For Under Construction Buyers

• Buyers pay an extra 5% GST, which increases the total price.
• Home loan amount may increase because GST becomes part of the cost.
• Monthly EMI may be slightly higher due to the increased loan value.
• Buyers do not get any GST refund benefit.

No Input Tax Credit Benefit

• Developers cannot pass any Input Tax Credit (ITC) benefit to buyers.
• Buyers pay the full GST amount without any reduction.
• This rule has been active since April 1, 2019.

For Ready to Move In Buyers

• Buyers save the full 5% GST amount.
• This makes ready apartments more affordable from a tax viewpoint.
• The overall cost is lower than that of units under construction.

Stamp Duty and Registration

• GST does not replace stamp duty.
• Buyers must pay 5% stamp duty and 1% registration in Karnataka.
• These charges apply in all cases.

Understanding Purva Northern Lights GST Applicability helps buyers avoid surprises and plan their money wisely. GST depends only on whether the apartment is under construction or ready to move in.