Will the Tax cut (Revised GST) for the Real Estate to be benefit ?
On February 24, 2019 – the GST Council recommended to revise the GST Rate on Real Estate Properties. Previously, the GST Rate for the Normal and Premium Housing projects, it was noted at a 12 percent. It is also considered for the properties costing Rs. 45 lakh and above. Now, the revised GST Rate is 5 percent which is effective from 1st April, 2019.
For the Affordable Housing, earlier the GST rates were stood at 8 percent, now it was revised to 1 percent. Previously, the buyer or customer should pay a service tax for the under construction property. After the changes in GST, the buyer need not pay any amount as a tax before the completion of a Property.
The Buyer is also have to pay the Registration and Stamp Duty fees for a property, the stamp duty usually varies between the State Governments, lies approximately around 5 to 8 percent.
Last day (25-02-2019), the share prices of the Realty Stocks saw a good rally due to Revised GST Rates on Real Estate Property. The Revised GST Rates for the Affordable and Non-affordable Housing projects will effect from the next Financial year 2019-20 (1st April,2019).
The Revised GST rates may not impact on buying a house. There are nearly Ninety percent of the Housing projects were completed and only very fewer are available under construction. We have to wait and see what will happen in the next fiscal year for these Realty Sector.
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