GST cut on housing sales 'revolutionary step', to boost sentiments: Experts
Property developers and consultants Sunday hailed the GST reduction on housing sales and termed the move as a "revolutionary step", saying it will boost sentiments and help the cash-starved sector in clearing around 6 lakh unsold homes
The GST Council Sunday decided to cut GST rate on affordable homes to 1 per cent without input tax credit (ITC) from earlier 8 per cent with ITC. The GST on under-construction flats, which are not under the affordable housing segment, has been reduced to 5 per cent without ITC from 12 per cent earlier with ITC.
Sales of under-construction houses were severely affected as there was no GST on completed homes. Developers had been demanding cut in GST rates as people were not buying under-construction units.
"The reduction of GST on affordable housing to 1 per cent is a revolutionary step for Indian real estate. This move is a significant triumph for home buyers and will play a huge hand in boosting their sentiments," CREDAI President Jaxay Shah said.
The ..