If your are home buyer and have been doing your window shopping, you might have understood how GST Calculation works and impact on your Home Budget. The Current GST on Under Construction property is 12% effectively after getting the input tax benefits.
GST Council headed by Deputy CM of Gujarat Nitin Patel is under the opinion of Reducing the GST on Under Construction Homes to 5% and 3% GST on Affordable Houses. The Panel has already submitted the report.
The news of GST rate being reduced from 18% to 5% GST is doing rounds for sometime but after our team interviewed couple of Builders in IT Capital Bengaluru, The benefit of GST reduction may not help the Home Buyers in any way. The Real Estate Builders & Developers are planning to increase base cost per SFT as the new proposed 5% GST is without input credit benifits which may indirectly effect the construction cost .