Goods and Services Tax Council announces rate cut for real estate
Home Buyers get Relief due to lowering of GST Rate with effect from 1 April, 2019
Recently the Goods and Services Tax (GST) Council announced lowering of tax rate from 12 % to 5% for under-construction property or ready to move in flats and in cases where completion certificate is not issued at the time of sale.
Further, the GST council also reduced the tax rate from existing 8% to 1 % for “affordable housing” which is defined as below
- Metro cities – Carpet Area - 60 Sq. Mtr and Rs 45 lakh apartment
- Non Metro cities – Carpet Area - 90 Sq. Mtr and Rs 45 lakh apartment
This will come into effect from April 1, 2019 and will give a boost to the demand in the under-construction segment as well as to the buyers. GST reduction will lower the buyers’ pay out by approx. 6%-7% on the overall purchase value.