저, 중가 주택 가격 인상을 위한 GST 요금 인하 GST rate cut to hike cost of low, mid-priced houses
[INDIAN REAL ESTATE NEWS] Good morning, everyone. I’m Kim suhyeon staff of Kamagroup Pvt. Ltd. Here I have an important Indian real estate news to share with you which is as undermentioned.
NAGPUR: Contrary to the perception that reduction of GST rate from the present 12% to 5% on under-construction homes would make houses cheaper, the move may, in fact, hit the interest of low and mid-priced home buyers.
Reason: The input tax credit (ITC) is likely to be done away with if such properties are brought under the 5% composite tax slab of GST.
Last week, following the latest GST council meet, finance minister Arun Jaitely had announced that the proposal to reduce the rate may be taken up in the forthcoming meeting this month.
The segment to be affected would be buyers of homes costing up to Rs7,000 per square feet. Considering the current cost of construction, which more or less is standard, and the rate of tax applicable on the material, having 12% GST along with ITC makes a better deal rather than 5% on composite basis (without ITC).
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