GST rate cut on under construction residential properties – Mr. M Murali, Chairman and Managing Director, Shriram Properties

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New Delhi, February 26, 2019: “The government’s decision to cut the Goods & Services Tax (GST) rates is a good fillip for the industry and a clear boon for home buyers of under-construction properties. Surely, sales under this category will witness an improved traction. Importantly, Government’s present move will go a long way in accomplishing the stated ambition and objective of providing ‘Housing For All by 2022’ by the Government. The definition of affordable housing has been now enlarged with increase in carpet area stipulations to 60 sq mts in metros and 90 sq mts in non-metros, alongside the GST rate on affordable housing projects has also been slashed to 1% with no ITC. This would mean higher benefits for affordable housing buyers. Consequently, mid- income housing will further look up in the coming days. With elimination of input tax credit, the construction cost for developers will go up to the similar extent in the short term .But, the long term benefits will be more. Over all, a welcome move by the Government to gear up the supply and sales momentum in housing, at the same time bringing further benefits to the homebuyers as promised during the interim budget-2019 presentation”.

Corporate Comm India(CCI Newswire)