EFFECTIVE TAX RATE ON COMPLEX, BUILDING, FLAT ETC. 08 DEC 2018 It is brought to the notice of buyers of constructed property that there is no GST on sale of complex/ building and ready to move-in flats where sale takes place after issue of completion certificate by the competent authority. GST is applicable on sale of under const,ruction property or ready to move-in flats where completion certificate has not been issued at the time of sale. Effective rate of tax and credit available to the builders for payment of tax are summarized in the table for pre-GST and GST regime. Period Output Tax Rate Input Tax Credit details Effective Rate of Tax Pre- GST Service Tax: 4.5% VAT: 1% to 5% (composition scheme) Central Excise on most of the construction materials: 12.5% VAT: 12.5 to 14.5% Entry Tax: Yes No input tax credit (ITC) of VAT and Central Excise duty paid on inputs was available to the builder for payment of output tax, hence it got embedded in the value of properties....