GOOD NEWS home buyers! The 33rd GST council meeting held on 24th of February 2019 has definitely been a long impending boon to many waiting to invest in the real estate sector. The news that GST Council has slashed tax rates for houses in both affordable and non-affordable segments came out as a major relief to home buyers and the real estate sector & housing growth.
The GST rate on affordable housing projects has been officially lowered from 8% to 1%. This means, a house built on an area of 60 sq mt or less in the metro will now be labeled as affordable housing. The GST Council also decided that intermediate tax on development rights shall be exempted for residential properties on which GST is payable.
This has been done in order to boost the housing growth on maintaining effective record of the dealings. The GST Council has been slashing tax rates to give relief to consumers and because of the rate reductions, the benefit amounting to approximately Rs. 90,000 crore per year has been given to consumers. The properties with the carpet area of 60 sq.mt in the metro cities and 90 sq.mt in non-metros, that fall under the Rs. 45 lakh cap will be eligible for the 1% rate, and above Rs. 45 lakh cap will be eligible for 5% rate explained the finance minister Mr. Arun Jaitley.
Mr. Jaitley said, “We wanted to give a boost to the real estate sector as well as give relief to the middle class, neo-middle class and the aspirational middle class.” He also stated that the scheme will be implemented with effect from the 1st of April 2019.
It is indeed a great economical accomplishment that will change the scenario of the home buyers as well as real estate. It will surely be as said “Housing for all by 2022”.