New Delhi: April 1st onwards Goods And Services Tax (GST) levied on housings will get reduced as per the latest GST council meeting agenda which will be a great relief to home buyers.” In its 33rd meeting the GST council has accorded big relief to real estate sector and will give a boost to the housing for all & fulfil the aspirations of neo/middle classes” -Finance Minister Mr.Arun Jaitley tweeted.
Home under construction will be levied by 5% GST against 12% and for affordable homes, GST will be 1% which is 8% now.
The government of India quoted that “the buyer of the house gets a fair price and affordable housing gets very attractive with GST at 1%”.
As per the rule, homes fit up to 45L – 60 sq.mtr in metros and 90 sq.mtr in non-metros will consider as affordable housing plan which is meant to handle by lower-income people. Also at these reduced Tax rates, there won’t be any input tax credit for GST paid ingredients such as cement, steel etc.
Arun Jaitley confirmed a Group of ministers (GoM) meeting for discussing the matter on lotteries which were once postponed by GST council.
The Government addressed this GST cut as the reduced cost of houses and this decision by GST council considers the problems faced by industries on cash flow issues.