To boost demand in the real estate sector, the GST Council, on February 24, 2019, slashed tax rates for under-construction flats to five per cent and affordable homes to one per cent, effective April 1, 2019. the Goods and Services Tax (GST) is levied at 12 per cent with input tax credit (ITC) on payments made for under-construction property or ready-to-move-in flats, where the completion certificate is not issued at the time of sale. For affordable housing units, the existing tax rate is eight per cent.
To guarantee that the land area does not return to being money driven, by virtue of evacuation of the ITC, Jaitley said the manufacturers should buy a ‘high rate’ (which will be chosen by a council) of their contributions from GST-enrolled merchants. The decrease in rates will give a lift to the Housing for All mission and satisfy goals of the neo-white collar class, he said
Concerning those properties where development work has just started, Jaitley said a panel of officers will draft the progress principles and edge rules. “The fitment advisory group and law panel, by March 10, 2019 will draft those rules and promptly place before the GST Council, which will meet by means of video gathering with the goal that clergymen don’t need to venture out to Delhi in race period,” he said. To guarantee that the land part does not return to a money economy and to fix the responsibility of back inventory network, an exceptionally high level of merchandise should be secured from GST-enlisted merchants, Jaitley included. “For that back chain, a condition will be put that a high level of buys to benefit of this, should be from enrolled merchants. The GoM has proposed 80 percent. Regardless of whether it is 80 percent or more, the gathering will reexamine it and present before the Council,” he stated, including this will guarantee that the back chain does not go to a money based framework.