GST rates revival is on cards for real estate.
A favorable News for all the property buyers. According to the latest GST News, purchasing of your dream home may become more affordable from next month. As the GST tax is going to be reduced on the under-construction housing property. In a recent meeting, the GST council has bring out a proposal to reduce the amount of GST on the under-developed houses and flats from 18% to 5% from next month.
As per the current scenario, a total of 12 percent GST is levied on the payment of under construction or ready-to-move-in apartments property. It is the expression for the property where completion certificate has not delivered at the time of sale. Though, GST is not imposed on the buyers of real estate properties who has been issued completion certificate at the time of sale.
Recently, in the 31st GST council meeting, the officials announced GST amount cut down on 23 items which includes video games, cinema tickets, TV, etc. Apart from this, the GST Fitment Committee has also announced that GST rates is going to be reduced on real estate properties. The further discussion on this matter will be made in the next GST council meeting in January.
With the concern of home buyers who feels that they are not getting benefited from GST law, the proposal of reducing the rates on the housing property is been put forward in the meeting. While Government feels that the property developers and builders are not processing on the input tax credit (ITC) benefit to buyers and in regards to that the current GST rates of 12 percent gets reduced to around 5-6 percent if input tax credit is levied on the amount.
Currently, the developers are not making the cash payment of the input materials used in construction of the housing property. Apart from this, the builders are not granting the benefit to consumers. In consideration to this matter, Government is making the efforts to bring the builders to the formal channel. The main constructional materials, input services and capital goods require for building of houses and flats attracts an impression of 18 percent of GST rate though cement attracts 28 percent GST tax.
Though, before the imposition of GST law, the underdeveloped housing property attracted 4.5 percent service tax & a VAT (value added tax) of 1-5% as per the state law. Apart from this, the input required in the construction process attracted 12.5 percent excise duty additionally to 12.5-14.5 percent VAT. Except this, entry tax was also imposed on the inputs.
After regulating the credits on the used inputs, the valuable GST tax imposed on such residential property was 15-18 percent. Though, time after time, the government has asked the real estate dealers to grant effective GST rate cut benefits to the consumers still not avail. Taking in account the buyers concern, Government is making all the efforts to rationalise the GST rates. It is also expected that India can opt for a single standard for GST rate in the future.
Thus, with GST rates reducing on the housing projects, it is the best time to invest in residential market. For all the home seekers who are looking to buy residential property in Gurgaon, its the perfect time to plan the deal. As the GST reduction plan proves to be a beneficial aspect for the home space seekers.
Godrej Air Sector 85 Gurgaon
Where one side the buyers are getting benefited from the GST rates reduction on the under-constructed houses and apartments. At the same time, a premium residential project is launching in the millennium city. Coming straight from the house of Godrej, the luxury project is based on the prime location of sector 85 in Gurgaon. The project is name as Godrej Air. The theme of this project truly justified the name, Godrej Air Sector 85 is based on clean air, clean water and clean food theme. The tagline of Godrej Air is Homes that Breathe Better. Godrej Air Sector 85 strives to offer clean and fresh air in every rooms of the apartments with CTFA technology. The project offers ample of green and open spaces with almost 90% greenery in the premises.
Godrej Air Gurgaon is the perfect combination of luxury living with the true essence of nature. The project execute ample of green trees & plants with number of landscape, garden and parks option available within the premises. Rejuvenate yourself daily in the morning and evening in the yoga park.
The project has the option of 2,3,4 BHK at attractive price. Godrej Air Sector 85 Gurgaon has great connectivity from NH 8, IGI Airport, Dwarka Expressway, Metro Station, Upcoming Bus stand and nearby area. The residents will get the benefit of all the ultra-modern amenities including swimming pool, car parking, wide open & green space, 24x7 security, badminton court, power backup, banquet hall, basketball court, car parking, kids playing area, club house, gym, jogging track, landscaped garden, library, skating rink, spa, squash court, tennis court and more.
Myshopdeal find the proposal of reducing GST on the payment of under construction housing property as an advantageous aspect. If you are planning to shift to new housing space or looking to make investment in property market, it is the right time to invest in the residential property. The cutting down of GST rates on residential property proves to be a profitable feature for buyers. Myshopdeal is the renowned digital real estate consultant in Gurgaon.
Myshopdeal is the official channel partner of Godrej Air Gurgaon. You can check all the details of Godrej Air project on Myshopdeal website.
To know more details about the Godrej Air residential Gurgaon Project, visit www.myshopdeal.co.in