GST At 5% For New Constructions
A piece of great news comes for home buyers, the GST council on Sunday slashed the tax rats on Under construction housings from 12 percent to 5 percent without the input tax credit, finance minister Arun Jaitley mentioned.
The council also brought down rates on affordable housing from 8 percent to 1 percent and also expanded the scope of affordable housing to those costing up to Rs 45 lakh and measuring 60 sq.m in metros and 90 sq.m in non-metro cities.
This new tax rates will come to effect from April 2019.
Currently, for ready to move flats GST levied was 12 percent where the completion certificate has not been issued at the time of sale. However, under the updated GST rates builders cannot claim an input tax credit (ITC).
Jaitley told reporters that “this decision in reducing GST rates will definitely boost up the construction sector.”
However, GST is not levied on real estate prop]erties for which completion certificate has been issued at the time of sale. With regard to lotteries, the GST council couldn't finalize its decision and the final proposal will be attained after the Group of Ministers (GoM) meet, Jaitely said to the reporters.
Currently, state-run lotteries attract 12 percent GST, while state-authorized ones are bearing 28 percent.