Mahadev Estates

Measures will make you sooner owner of your Home

Good news for home buyers. The object and service council has decided to reduce the rate of GST on under construction houses. It has been reduced from 12 percent to 5 percent. Also, special offers have been offered for affordable homes.

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The tax rate has been kept at 1 percent. It is a different matter that the council has withdrawn the benefits of tax credits on inputs like steel, cement and paints. He argues that the builders are putting gains in their pocket. The advantage of this is not being extended to the customers. New rates will be effective from 1st April. At affordable rates, tax is charged at 8% rate.

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This is 12 percent for under-construction apartments. This move is considered to be extremely important. This will also help in curbing cash transactions and black money in the sector.

 

 

metro city will have 60 square meters (about 650 square feet) in the affordable category. While in non-metro cities this size will be 90 square meters (970 square feet). The condition is that the house costs up to 45 lakh rupees.

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This means that houses up to Rs 45 lakh will be in the affordable category. Council approved these decisions on Sunday. After the meeting, Finance Minister Arun Jaitley said, "GST Council has given great relief to the real estate sector, which would strengthen the campaign for 'everyone's house', which will fulfill the aspirations of the new middle class and the middle class."

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GST does not seem to be found on construction certificates. Home buyers only have to give stand duty for registration. GST Council's decision will benefit those buyers who are involved in the construction-linked payment scheme. Not that those who have already done 95 percent downpayment. Niranjan Hiranandani, president of the National Real Estate Development Council (NAREDCO) said that this step will have a positive effect. Home buyers hope to get relief from it. This will reduce the gap between demand and supply. However, Supertech chairman RK Arora is frustrated with the decision to return the input tax credit.

 

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At present, the tax consultant has cautioned that prices may be seen in the coming weeks. The builder can do this to cover the shock of input tax credits. The council meeting is to be held on 10th March. It will decide whether commercial use of small portions in residential homes can also be given tax benefits. The houses in which there are shops in one part will have an eye on this.

Reference -

https://www.emailmeform.com/builder/form/SiqbG2zomPQe4N

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