realestate2022

How GST cut on under-construction houses will help home buyers The GST Council's decision will only benefit buyers who are on construction-linked payment schemes. The committees will also look at issues such as transfer of development rights, joint development agreements, lease premium The Modi government on Sunday announced a cut in the goods and services tax charged on sales of residential properties under construction as it looks to stimulate the economy by driving up consumption. The Goods and Services Tax Council, comprising central and state finance ministers, announced that the new rate will be 5%, down from 12 percent, on all new housing projects except those that are classified as af fordable housing. The council also decided to slash the tax rate on affordable housing projects to 1 percent from 8 percent.However, builders will not be able to claim input tax credit (ITC) under the new GST rates. The new rates will be applicable from April 1. The Council also made chan...

No GST On Competed Projects,  Finance Ministry Clarifies (Shutterstock) Clarifying that units that have received a completion certificate do not attract any GST (goods and services tax), the finance ministry on December 8 asked real estate developers to pass on the benefits they get in the form of input tax credit to homebuyers. "It is brought to the notice of buyers of constructed property that there is no GST on sale of complex/ building and ready to move in flats where sale takes place after issue of completion certificate by the competent authority," the ministry said in a statement. "Builders are also required to pass on the benefits of lower tax burden to the buyers of property by way of reduced prices/ installments, where effective tax rate has been down,” the statement further read. In fact, the anti-profiteering body ordered Gurgaon-based developer Pyramid Infratech to compensate over Rs 8.22 crore to 2,476 flat owners, who had invested in the company’s two affo...