What is the GST treatment of residential property sales in SA?
Correct Answer
D) GST applies to sales of new residential premises but not established homes
Under the GST Act, the sale of new residential premises (by developers/builders) is subject to 10% GST. The sale of existing (established) residential property is input-taxed and not subject to GST. The margin scheme may apply to reduce GST liability.
Why This Is the Correct Answer
Under the GST Act, the sale of new residential premises is a taxable supply, while the sale of established residential premises is input taxed, so no GST is charged on it.
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