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GST on Stamp Duty and Registration Explained
In this article, we will look at the applicability of GST on stamp duty and registration, discover the GST rates on different types of stamp duty, and provide insights into the impact of GST on stamp duty and registration.
Applicability of GST on stamp duty and registration
The Goods and Services Tax (GST) law doesn't include stamp duty or registration charges. This is because stamp duty is a specific fee imposed by state governments and is neither classified as goods nor services under the GST Act. Therefore, no GST on stamp duty and registration can be imposed.
GST rate and HSN code stamp duty
With stamp duty and registration charges kept out of scope of GST, GST rate and HSN code stamp duty is not applicable.
Impact on GST on stamp duty and registration
GST can indirectly affect real estate expenses even if it does not directly affect stamp duty and registration charges. GST is applied to construction materials like cement and steel. When the costs of these materials go up, it can indirectly increase the overall property transaction expenses. As a result, the stamp duty you have to pay might also be influenced.
To sum up, when it comes to property deals, there's no GST hassle for stamp duty and registration charges. These fees, governed by state rules, steer clear of the GST realm, making your real estate transactions a bit simpler.
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About the Author
Annapoorna
I preach the words, “Learning never exhausts the mind.” An aspiring CA and a passionate content writer having 4+ years of hands-on experience in deciphering jargon in Indian GST, Income Tax, off late also into the much larger Indian finance ecosystem, I love curating content in various forms to the interest of tax professionals, and enterprises, both big and small. While not writing, you can catch me singing Shāstriya Sangeetha and tuning my violin ;). Read more
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