GOI’s push to the real estate market: GST rates on housing reduced to 5%
GST Council has reduced the tax rates on under-construction buildings and housing works to 5% from the existing rate of 12%. This decision taken by the government is giving a major push to the residential property sector in India.
Union Minister Arun Jaitley confirmed the decision taken by the GST council which has also cut the rates from 8% to 1% on housings. Effective from April 1, 2019, these new tax rates will help the buyers who want to afford a house with a cost above Rs 45 lakh. However, the ready properties that have received the occupancy certificate (OC) do not attract GST.
Jaxay Shah, National President of realtors’ body the Confederation of Real Estate Developers Association of India (CREDAI) termed this move as a significant triumph for home buyers which will play a crucial role in boosting the sentiments.
With this move to reduce GST to 1% the, GOI is focused on its agenda of pushing affordable homes i.e, Housing for all by 2022. Overall, the news has left the common man who dreams of own home. This also supports the residential real estate market to invest in the respective sector.