GST has also been lowered for some selected housing schemes, run by the Govt.
For people looking to buy flats or investing in real estate, we have good news!
No extra GST charges will be applicable to flats and real estate after the certificate of completion has been issued.
The Finance Ministry released a statement announcing the same. However, GST is still applicable to the sale of under construction property or ready for possession flats where completion certificate is not issued at the time of sale.
The ministry went on to say that in case of housing projects under affordable housing schemes like Pradhan Mantri Awas Yojana, Jawaharlal Nehru National Urban Renewal Mission, Rajiv Awas Yojana or any other housing scheme of state governments, GST of 8 % only will be applicable.
Reports say, ‘For such projects, after offsetting input tax credit, the builder or developer in most cases will not be required to pay GST in cash as the builder would have enough ITC in his books of account to pay the output GST.’
Overcharging Put To a Stop
Apparently, this step has been taken with an agenda to protect prospective buyers from the various different schemes of builders looking to earn money by hook or by crook.
Before the implementation of GST, the tax rate on real estate was around 15% – 18% and it has not increased for affordable and other entities after the implementation of GST. GST (Goods and Services Tax) has been implemented in India for over a year now.
Since the beginning, GST has been waived off totally for some products, reduced for some and increased as well. In spite of this, there is still a wide majority of people who do not know how the GST works and pay GST after paying the MRP as well and get manipulated by shrewd sellers.
To keep this in check, the Finance Ministry has brought this amendment to the attention of potential buyers.
Time and again, the ministry has reached out to the public of India with their protection in mind. Similar clarifications have been released via press releases, social media handles, newspaper advertisements since the commencement of GST in June 2017.
GST Benefits Should Be Passed On To The Customers
Remember: Clause 171 has been inserted in the GST Act which provides that it is mandatory to pass on the benefit due to a reduction in the rate of tax or from an input tax credit to the consumer by way of commensurate reduction in prices.
In a country where buying a decent place to live is still a dream for many, this news is a bit of a relief.
Do you agree with the Finance Ministry’s decision? Share your opinions with us in the comment section!