GST on under construction house property (including affordable housing) w.e.f. April 01, 2019
To boost demand in the real estate sector, the GST Council, on February 24, 2019, slashed tax rates for under-construction flats to five per cent and affordable homes to one per cent, effective April 1, 2019. Currently, the Goods and Services Tax (GST) is levied at 12 per cent with input tax credit (ITC) on payments made for under-construction property or ready-to-move-in flats, where the completion certificate is not issued at the time of sale. For affordable housing units, the existing tax rate is eight per cent.
With a view to assist India’s real estate sector jump out of a slowdown, the Goods and Services Tax (GST) Council on February 24, 2019 has taken an initiative to cut down the GST rate on under construction houses w.e.f. April 01, 2019 with some other benefits which is mentioned below for proper analysis of readers:
Details of the scheme shall be worked out by an officers committee ans shall be approved by the GST council in a meeting to be called specifically for this purpose.
The law and fitment committee will draft the guidelines by March 10 which will be taken up in a subsequent GST Council meeting, Jaitley added.
Hope this will help the businessman to plan the tax accordingly.
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