(DNA)
The Goods and Services Tax (GST) Council is likely to decide on lowering tax rates on real estate in its meeting scheduled today. The Council meeting, to be chaired by finance minister Arun Jaitley through video conference, will decide on lowering GST for under-construction houses from 12% to 5% and for affordable housing from 8% to 3%. Meanwhile, the benefit of the input tax credit (ITC) available to the builders is set to be withdrawn. This is likely to bring relief to homebuyers as the benefits are not being passed on to them.
Currently, premium housing attracts 12% GST while an effective rate of 8% is applicable on the affordable housing segment for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale. The GST, however, is not levied on the properties where the completion certificate has been issued.
