Time has arrived to buy affordable homes. The decisions were already taken which wraps the benefits for all, the buyers, the sellers, and the government. Reduced GST rates have made the homes indeed affordable but it is going to benefit real estates builder and government also? Let us read how…
GST council had already finalized the decisions regarding the alteration in the GST rates on real estate to 1% & 5% for affordable houses and other under construction properties respectively.
Now as on 1st April, the time has arrived when these rates will finally be applicable and consumers will take advantage of it. Now the consumers will have to pay just 5 % and 1% as against 12% for under construction property and 8% for affordable housing where the criteria for affordable housing has also been expanded to the cost of up to Rs 45 lakh and measurement of 60 sq meter in metros and 90 sq meter in non-metro cities.
According to Gopal Das Gupta, chairman of CREDAI, Rajasthan, these measures of curtailing down the GST rates will serve benefits to the home-buyers and will also bring relief to the real estate dealers. The real estate market is stagnant at this period of time but the application of declined GST rates on the properties will undoubtedly improve the scope and business of the sector.
A developer elaborated the impact on real estate by giving an example that if a consumer purchases a flat worth Rs one crore, he has to pay approximately 18 percent tax, including registry, stamp duty, and GST, which is a heavy amount. Now consumers will have to pay Rs five lakh, instead of Rs 12 lakh as GST tax. This would be a major relief for the home buyers. He added “The developers were asked not to charge GST from the consumers. However, the practice was not followed by the developers,”
Similarly he explained the benefits to customers buying the homes which come under the category of affordable housing scheme and how the augmented criteria for affordable housing is going to give advantage to the middle-class individuals, with an example” “On a Rs 10 lakh affordable flat, the consumer will have to pay Rs 10,000 instead of existing Rs 80,000. As bracket of affordable housing is increased to Rs 45 lakh, this will also benefit middle-income groups.”
So, these revised GST rates are holding edge for all as at one place it is going to boost the demands of home-buyers for affordable homes, it will give rise to the real estate industry, at another point it will also help people buy affordable shelter easily simultaneously it will help government achieve the mission and vision of ‘Housing for All 2022‘ rapidly and surely.
