New GST rates – Explained
What’s the new GST rate?
The Goods and Services Tax Council had announced reduction in the tax on under-construction houses to 5% (without input tax credit) from 12% earlier. While for affordable housing* the rate was reduced to 1% (without input tax credit) from 8% earlier.
What is Affordable Housing?
Houses with a carpet area upto 60 square meter (approx. 645 square feet) in metro cities** and 90 square meters (approx. 960 square feet) in non-metro cities having value upto INR 45,00,000/- price bracket (both for metro and non-metro cities) will be considered affordable housing. The effective GST rate on these houses will be 1% (without input tax credit).
**Metro cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR).
Are these rates mandatory?
As per the clarification by the GST council on 19th March, developers and builders can opt to either charge the GST as per the old rates, with input tax credit or the new rates, without input tax credit.
From when will it be effective?
This will be effective from 1st April, 2019.
Lodha, Building a Better Life, the right way
At Lodha, guided by our vision of ‘Building a Better Life’ we follow transparent and ethical business practices. We have stringent anti-corruption, anti-bribery and anti-money laundering polices that are binding to all our associates, contractors, suppliers, subsidiaries, affiliates and sub-contractors. We ensure adherence to high level of social, ethical and responsible practices in any business dealings by multiple check-points and process in place. Any suspected instance of policy violation is deftly investigated and appropriate disciplinary action, including suspension & termination of service or initiation of civil and/or criminal proceedings is undertaken. Coupled with our commitment of nurturing an environment that enables growth and fulfils ambition for all our stakeholders and consumer trust in the brand; Lodha is India’s leading realty player.
TAGS
Similar Blog Posts
6 Reasons why you should inv...
Real estate as the name alludes to is “real”. A tangible asset, it provides a sense of stabil
TAGS
Trends in Real estate 2022...
The real estate market saw a fantastic 2021. Rising knowledge about the need for more space, heal
TAGS
4 Mistakes To Avoid While Bu...
Buying a home is akin to fulfilling a lifelong dream for most people. Since it’s a huge investm
TAGS
Things to Look Out for When ...
The process of home buying has undergone a sea of change for the better. Today, you will find the
TAGS
6 Ways You Can Save Money Fo...
Having an own home is a dream of many. It is often considered as a sign of stability. Buying a ho
TAGS
What are Homebuyers Looking ...
In 2021, the Indian residential sector made a solid comeback, with house sales in the top seven c
TAGS
Ready-to-move-in vs. under c...
One of the most common dilemma you face when buying a house is whether to invest in a ready-to-mo
TAGS
Residential
Guide for NRIs to invest in ...
The Indian real estate industry is expected to grow to a $650 billion business by 2025. This also
TAGS
Smart Cities: Digital Transf...
World over, there are several cities that are transforming themselves and providing better lives
TAGS
Why Should NRI Invest in Rea...
Working abroad usually means a great paycheck. A large portion of the paycheck is usually left fo
TAGS
Why Invest in Real Estate?...
From an asset allocation perspective, experts advise that one should spread out their investments
TAGS
Mumbai – top destination f...
Mumbai is the capital city of Maharashtra and a city that is the land of dreams. It is known for
TAGS
Things to consider when choo...
Once you have zeroed in on the property that matches with your preferences of a developer, budget
TAGS
The Tax Benefits of Taking a...
Owning a house is a dream for almost everyone. And to help people realise this dream, the state a
TAGS
Know How to Calculate Home L...
Thanks to several government initiatives like reduction in stamp duty and other tax benefits, the
TAGS
Why Should NRIs Invest in a ...
Indians always preferred investing in real estate, and with the sector in India reclaiming its po
TAGS
Your Guide for Buying a Week...
Usually located within couple of hours drive from the city, weekend homes are set amidst nature a
TAGS
Living Belmondo
Benefits of Buying a Flat in...
For many, the idea of buying a flat in the heart of Mumbai is the ultimate fulfilment, but most h
TAGS
Top 5 Reasons Why You Are Ri...
COVID-19 has undeniably made us realise the value of having a home for our own. On the other hand
TAGS
Lodha - Building A Better Li...
We have stringent anti-corruption, anti-bribery and anti-money laundering polices at Lodha.
TAGS
All You Must Know About Avai...
Home loan is by far the most common type of loan that’s availed by individual
TAGS
Residential
Buying a House Post Covid? 5...
The COVID pandemic has brought about sweeping changes in our lives. It has compelled us to view t
TAGS
Integrated Township – All ...
A well-developed township offers a plethora of advantages – a great community, better quality o
TAGS
Tips to Repay Your Home Loan...
Despite the recent reduction of interest rates on home loans by most banks and NBFCs, the burden
TAGS
COVID-19 has Led to the Grow...
The 2020 coronavirus pandemic has made nations across the world execute lockdowns and social dist
TAGS
Ideal Age To Buy A Home- Sho...
Owning a home continues to be a priority for most Indians. However, this is step is generally tak
