Cheaper housing for Delhi-NCR
GST council reduced rates for housing to boost demand.
GST council reduced rates for housing to boost demand.
From 1st April…
GST for Under-construction flats will be 5%. Earlier it was 12% with input tax credit on payments.
GST for affordable homes ( upto INR 45 lakhs) will be 1%. 2019. For affordable housing units, the tax rate was 8%.
Good for buyers:
Buyers will be able to get flats at a cheaper price. Experts say that it is more applicable for flats at higher price points such as INR 6000/ square foot.
Small-sized apartments in metro cities may not be within the Rs 45-lakh limit and therefore, may not enjoy the lower GST under affordable housing.
Stamp duty will continue to be applicable, irrespective of whether the property is under-construction or constructed.
Bad for developers:
New rule does not allow the developers to claim the input tax credits.
Realtors will have to increase the pricing.
Black money transactions may increase.
Know more: