पंजाब के मुख्यमंत्री ने बानूर के मास्टर प्लान को मंजूरी दी

GST rate cut on housing to address needs of home buyers: CII

The GST Council's decision to cut the rate on houses under construction from 12 per cent to 5 per cent as well from 8 per cent to 1 per cent on affordable housing will address the needs of home buyers and boost offtake of housing, CII said Sunday. "The real estate and housing sector drives construction and is a key employment generator and we believe today's decisions for a better and simpler tax regime will boost offtake of housing, thereby also contributing to job creation," CII Director General Chandrajit Banerjeesaid. He said the GST Council has provided a great relief to the sector and is a step towards hastening growth for this very important sector. In a big relief to home buyers, the GST Council Sunday slashed tax rates on under-construction housing properties to 5 per cent without input tax credit, from the existing 12 per cent, Finance Minister Arun Jaitley said. The Council also cut GST rates on affordable housing to 1 per cent from the current 8 per cent and expanded the scope of affordable housing to those costing up to Rs 45 lakh and measuring 60 sq metre in metros and 90 sq metre in non-metro cities. The new tax rates will come into effect from April 1, 2019. Currently, the GST is levied at 12 per cent on payments made for under-construction properties or ready-to-move-in flats where completion certificate has not been issued at the time of sale. However, builders will not be able to claim input tax credit (ITC) under the new GST rates. Source: ET Realty

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