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Good News for BUYERS/INVESTORS in property

What is the new GST rates ?

The Goods and Services Tax Council has reduced the Tax on under construction houses from 1st April 2019 to 5%( without tax input credit) from earlier 12%. While for affordable housing** , the rate will now be 1%(without tax input credit) from earlier 8%. This good news for prospective home buyers or Investors.

Details of Rates based on Size and value of unit in Metro/Non metro as follows :


FOR METRO CITIES:

Size of House(carpet area) Value of House(Rs) Existing GST rates New GST rates
Upto 60 sqmt(645 sqft) ***Upto 45 lakhs 5 % 1 %
Above 60 sqmt ***Above 45 lakhs 12 % 5%

FOR NON METRO CITIES:

Size of House(carpet area) Value of House(Rs) Existing GST rates New GST rates
Upto 90 sqmt(960 sqft) ***Upto 45 lakhs 5 % 1 %
Above 90 sqmt ***Above 45 lakhs 12 % 5%

Definition of Affordable Housing ?

**House with carpet area upto 60 sqmt in Metro cities and 90 sqmt in Non Metro Cities with the value of house upto 45 lakhs.

***Metro cities are Bengaluru, Delhi NCR, Hyderabad, Kolkata, Chenai, Mumbai MMR. etc

I think this change will bring needed BOOST in Real Estate Sectors in time to come