New gst rates will increase cost of housing
Relief for home buyers as GST Council announces rate cut for real estate
The 33rd reconvened meeting of the Goods and Services Tax (GST) Council on Sunday lowered the tax rate for under-construction housing to five per cent (without input tax credit) from the present effective rate of 12 per cent (after one-third abatement of land). For affordable housing, the GST rate was reduced to one per cent from eight per cent.
Addressing the media, Union Finance Minister Arun Jaitley said, “We have adopted twin definition of affordable housing. One, on the basis of carpet area and another, on the basis of cost. In metro cities, a 60 sq metre carpet area and Rs 45 lakh apartment will fall under affordable housing. In non-metro areas, it will be 90 sq metre carpet area and Rs 45 lakh apartment. This will come into effect from April 1.” more