[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.
The cut in GST on affordable homes from 8% to 1% may not be the bonanza that it appears to be. For most buyers it may result in only a marginal reduction in the cost and, in some cases, may even make homes more expensive.
This is because with 8% GST charge, input tax credit (ITC) was available. That has been removed with reduction of GST to 1%. ITC is a deduction available on final GST liability for the tax already paid on purchase of inputs or raw materials.
Affordable homes are defined as ones with sale price of Rs 45 lakh or less and a carpet area of 90 square metres (968 square feet) or less in non-metro cities like Nagpur. Given the criteria, an affordable home can be priced up to Rs 4,000 a sqft in the city, according to builders.
Read more at: https://economictimes.indiatimes.com/wealth/real-estate/home-buyers-may-end-up-paying-more-after-gst-rate-cut/articleshow/68181360.cms
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Have a nice day.