With GST soon to be implemented, industry experts say that it will be a boon to customers of the housing sector.
- GST rate of 12% in the housing sector is a customer-friendly decision and will lead to reduced tax liability or be tax neutral.
- Housing prices are likely to fall by up to 5% following the implementation of Goods and Services Tax (GST) across India from July.
- The council has fixed the GST at 12% on the housing sector, with the allowance of credits for taxes paid on inputs like cement, steel, paints, and other items.
- The service tax of 4.5%, that buyers pay while taking possession, will not be levied once the GST comes into force across the country.
- The GST implementation will help the affordable housing segment the most. The net price in the affordable housing segment of up to Rs. 30 Lac at Rs. 3,500 per square feet built-up area should fall by 5%.