Slashing GST on under-construction properties has turned out to be a good move towards increasing the demand for residential properties. With a view to achieving the objective of ‘Housing For All by 2022’, the government decided to reduce the GST rates from 12% to 5% for under-construction properties. Similarly, the GST rates for affordable housing were reduced from 8% to 1%.
According to the National President of CREDAI, “The reduction of GST on Affordable Housing to 1 per cent is a revolutionary move for Indian real estate. This move is a significant triumph for home buyers and will play a huge role in boosting their sentiments.”
Ready-to-move properties with an occupancy certificate are not eligible for the new GST rate.
With the lowering tax burden, it is quite evident that the home buyers will certainly benefit from this decision and that more developers will be keen to build more affordable homes.
But, this is not it, the government has made other revisions as well, in the size of affordable homes and ITC benefit. According to the revised size of affordable homes, a non-metro city will have a 90 sq. mt and a metro city will have a 60 sq. mt unit, valued at approximately Rs 45 lakh. For the ITC part, the government has decided to eliminate the ITC or input tax credit benefits to the builders, which will reduce ambiguity for buyers.
In simple words, the new GST rate and the other revisions that came along are only going to benefit the users.
Advantages To The Home Buyers: A Complete Buyers’ Market
According to the market experts, elimination of ITC benefits may hit the supply side’s profitability, but, it will certainly push greater demand, greater sales and greater revenues. Also, with the new GST rate cut, the prices of the properties will remain stable with only minimal expectation of any increase in the rates of apartments in NH 24 Ghaziabad and other destinations.
Thankfully, this GST Council’s decision has been made effective from the 1st of April, 2019. Hence, you need not to wait to buy your ideal home. The new GST rate is applicable on all the new flats in Nh 24. so, make sure you time your entry in the realty market as soon as possible.
Union budget 2019-20
Loans borrowed up to March 31, 2020, are entitled to a deduction of Rs 1.5 lakhs on interest. There would be no tax levied on individuals with an annual income below Rs 5 lakhs.
So, what are you waiting for? With these benefits, real estate is the best asset to invest in. Buy today!