If you buy or build a brand new home or condo, you need to pay the federal goods and services tax (GST) on the purchase price – or the harmonized sales tax (HST), if you live in a province that has it.
Now, there’s one of two ways you’ll have to pay this: with cash on closing day, or through your mortgage.
Do I have to pay GST on a property purchase?
The government, on February 7, 2018, asked builders not to charge any Goods and Services Tax (GST) from home buyers, as the effective GST rate on almost all affordable housing projects is eight per cent, which can be adjusted against the input credit.
How much is GST on a home purchase?
The Goods and Services Tax (GST) Council at its meeting here on Sunday reduced the GST rate on under-construction houses. For flats priced more than Rs 45 lakh, the new GST rate applicable from April 1, 2019, stands at 5 per cent, against 12 per cent currently.
Can you claim GST on purchase of residential property?
Claiming GST credits when purchasing property
You can claim an input tax credit for any GST included in payments for expenses you made for your GST-registered business. purchase a property as a private sale. purchase or construct new residential property for rental purposes.
What is GST on new house?
New Delhi: To give relief to home buyers, central and state governments decided in February to cut the rate of Goods and Services Tax (GST) on under-construction houses.