The Finance Minister Arun Jaitley on Sunday announced a big relief to home buyers by slashing tax rates on under-construction properties to 5 per cent from the existing 12 per cent.
Current 8 per cent GST rates on affordable housing was also significantly brought down to 1 per cent. It was a big encouragement for affordable housing to flats costing up to 45 lakh and measuring 60 sq metre in metros and 90 sq metre in non-metro cities.
As per the information, the new rates will be effective from April 1, 2019.
At present, there is a provision of 12 per cent GST on the under-construction properties or ready-to-move flats where completion certificates have not been issued.
Also, under the new GST rates, the builder will not be allowed to claim input tax credit (ITC).
While addressing a press conference, Jaitley said that the decision to reduce the GST will certainly give boost to the construction sector.
It is to be noted that there is no GST on properties which have already been issued completion certificates.TAGS: GST on under- construction properties / GST on properties / GST on buying flats / GST on real estate / Finance Minister / Arun Jaitley