One Happy Reason To Buy Your Dream Home: GST Rates ReducedMarch 6, 2019
4 Key Things To Know About Reduced GST Rates In The Real Estate Sector
Owning your dream home is now made easier from 1st April with the Goods and Services Tax (GST) rates slashed by the Government on all under-construction flats. This move was aimed to fulfil the objective of ‘Housing For All by 2022’ and to widen the definition and demand for affordable housing segment among the neo or middle class sector.
Here is what you should know about the recent GST rate cuts in the real estate sector:
1. The GST rate on residential properties that fall under the premium housing segment and the under-construction category has been reduced from 12% with an input tax credit (ITC) to 5% with ITC. And the rate for affordable homes has been reduced from 8% with ITC to 1% without ITC.
2. GST rates are slashed for under-construction properties or ready-to-occupy flats where the completion certificate is not issued to the buyer at the time of sale. Whereas, ready-to-occupy properties having Occupancy Certificate (OC) would attract stamp duty and not GST rates.
3. The GST Council has redefined affordable housing segment with under-construction properties priced up to Rs.45 lakh attracting 1% GST without ITC. This is applicable for both metro and non-metro projects with a carpet area of 60 square meters in cities like Delhi-NCR, Bengaluru, Chennai, Hyderabad, Mumbai-MMR and Kolkata; and 90 square meters in non-metro cities falling under Rs.45 lakh cap would be eligible for 1% GST rate.
4. The reduction in GST is estimated to boost the demand for residential properties as it would potentially reduce a buyer’s payout by 6-7% on the overall cost, depending on the category. This acceleration in sale will bring down the unsold inventory which has been afflicting the real estate industry.
Enjoy the benefits of reduced GST rates with the multiple ongoing and ready to occupy apartments in Calicut and across Kerala from one of the best builders in Kerala, Ladder Kerala. To know more about the projects – https://ladderkerala.com/projects/