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5% GST Rate..

5% GST Rate For Under-Construction Properties Approved

It is a big relief to home buyers as the GST council reduced the tax rates up to 5% on under-construction properties without the input tax credit.

 

In the words of Niranjan Hiranandani, who is the managing director of Hiranandani Group, 5% of GST on under-construction properties will make a lot of difference. However, he expected a low GST rate on cement as it has a big impact on the housing and infrastructure sector.

 

The GST council has also slashed off the GST rates on affordable housing to 1% from the existing 8%. This has widened the scope for affordable housing that costs up to 45 lakhs and measuring 90 sqmeter in non-metro cities and 60 sqmeter in metros.

Currently, the state-run lotteries are levied with a 12% of GST rate while the state-authorized ones attract 28%.

Jaitely said, that the north-east states have demanded these rates to be reviewed. He also added, that the small north-east states were falling back in the competition in the market as they lacked the required infrastructure for the same.

 

As stated by SudhirMungantiwar and group of ministers, there should be a single rate for lotteries. It can be either 18 or 28.

 

As the members of Punjab and Kerela couldn’t be present at the meeting, there will be another meeting held where the issues will b discussed in details.

 

Jaitley said that the GST council has agreed to lower the GST rates to 1% for affordable housing. This is expected to give a great push to the real estate sector while making it convenient for middle-class, aspirational class and neo-middle class to afford the properties.

Other issues like transfer of development rights, lease premiums, joint development rights and sale or transfer of floor space index are expected to be exempted from GST, said Jaitley.

 
 

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