ALERT HOMEBUYERS! GST RATE CUT TO FETCH YOUR DREAM HOUSE AT AFFORDABLE PRICES!
The Goods and Services Tax (GST) Council has slashed the tax rate on under-construction and the affordable housing units from the existing 8% to marginal 1% on affordable category and from existing 12% to 5% on under-construction homes. The development is poised to change the residential market across the country. This reduction in the rates is expected to fulfil home buying aspirations of the neo-middle class. As before, the ready-to-move-in (RTM) properties with occupancy certificate (OC) attracts no GST.
In order to achieve the objective of the ambitious programme – ‘Housing for All by 2022’, the government has revised the definition of affordable housing segment. Now a home buyer can avail, GST benefits on properties priced up to ₹45 Lakh instead of the existing ₹40 Lakh and measuring 60 m2 carpet area (approximately 2-BHK) in metros viz. NCR, Bengaluru, Chennai, Hyderabad, MMR and Kolkata and 90 m2 carpet area (approximately 3-BHK) in non-metros. With regard to the applicability of GST on affordable housing units, currently there is no valuation threshold and the calculation of carpet area varies from one project to another.
Here is how much you can be saved from the revised GST rate cut?
We have a made sample calculation to understand the extra saving for home buyers. For under-construction projects, you can expect a post GST price cut up to approximately 6.3%. Assuming you are purchasing a property of ₹39 Lakh, the lower GST rate will drop the cost of the property by around ₹2.5 Lakh.
With the new GST subsidy coming in as a game changer for the realty market to spread cheer amongst the home buyers, the buyers holding on to the property purchase decision so far can now go ahead and make the investment happily. For those looking to invest in Bengaluru, there is no better moment to buy ready-to-move-in apartments in Bengaluru, as well as luxury apartments such as Bhadra Landmark in Basavanagudi, MG Road, Banashankari, Giri Nagar, Mahalakshmi Layout.
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