Q

Will GST rate cut in 2019 and its impact on Indian residential real estate?

By Pankaj
07 Jan 19 143
Will GST rate cut in 2019 and its impact on Indian residential real estate?

2 Answers

A

Richa Patel

28 Jan 2019 03:36 PM

Govt planning to cut GST on property under construction, with riders

Come 2019, buying an under-construction flat will become cheaper. The Centre and the State governments are working to lower the Goods and Services Tax (GST) with some riders.

“Two options are on the table: The first option is levying 5 per cent without input tax credit (ITC) provided the builder establishes that he has purchased at least 80 per cent of material from a GST-registered supplier. The second option is 12 per cent with ITC,” a senior government official said.

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A

Pankaj

07 Jan 2019 11:30 PM

“The expected lowering of GST on under-construction flats and houses to 5%, as well as hiking exemption threshold for MSMEs by the GST Council would be a welcome move, and pro-industry initiative taken by the government.  We will have to watch and see as to how this move pans out and its possible implications in the long run. However, the general sentiment within the real estate fraternity is upbeat, with the move likely to set the industry on an optimistic path.” - Mr. Sankey Prasad, Chairman and Managing Director, Synergy Property Development Services.

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