With Effect from 1st April, 2019, The GST rates would be slashed to 5% for new projects. The rate cut is better than the anticipation bringing a positive sentiment for the real estate market. This announcement expected a fillip to real estate market and moreover the process is simplified which was a lot complex earlier. The G.S.T rate on affordable housing is further slashed to 1% . The definition of affordable housing is also broadened therefore widening its scope to those costing upto 45 Lakh and measuring 60 sqm in metros and 90 sqm in on metros. This would broadly cover 85% of the housing across India . Over all it was a much required move to give a boost to the real estate sector and to put the faith of investors back into the sector which is witnessing one of the worst slump. Sales of unsold inventories of builders will pickup. However ITC (Input Tax credit) which was earlier available on real estate sector will now not be available . Rules ans guidelines for transition from old GST to new GST rates are yet to be made for the properties which are already sold at earlier rates. Detailed circular on the changes in will be available after 10th march 2019.
|Category||Earlier GST %||Now GST %|