A load of previously imposed 12% GST on the houses of the low wage groups has been reduced under the Pradhan Mantri Awas Yojana. After the notification of central government, approximately 30 thousand families in Lucknow have to pay low taxes.
Financial department of LDA’s officials has explained that this relaxation is` given under the Credit Liquid Subsidy Policy (CLSP) of the Pradhan Mantri Awas Yojana. During the 26 January meeting of the GST Council, the issue was discussed.
After that, it is decided that in CLSP, GST should be imposed on the development of the Pradhan Mantri Awas. During this, the technical problems which encounter while deciding the price of the property are also discussed. After all the discussion, it has been decided that a third value of the property under Pradhan Mantri Awas Yojana will be considered as the total value of the property.
In a direct manner, GST will be charged on the only two-thirds value of the house or flat and charged form the purchasers of the property. Similarly, this rate reduced from 12% to 8% now. This profit will be eligible for the family whose annual earning is up to Rs. 18 lakh, purchasing the house for the first time and the corporate area is less than 60 square meter.
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