If you are preparing to buy the house, then you must first collect information about GST on the property. It can save you a lot.
The builders have been charging more than the consumers at the time of first service tax and many times in the name of GST. As a result, since April 1, the Center has reduced rates of GST on the distribution of houses in two categories. In such a situation, make sure to know the rate of GST before making a payment to the builder. How many GST rates at cheap home? : The government had announced in the interim budget in February this year that on April 1, the GST will be constructed at a rate of 1% and 5% on the houses (flats) under construction. Under this, one percent GST will be available on cheap houses. Whereas others will take five per cent.
How much savings will be on buying
According to the new rules, the project, which started after April 1, will have to pay GST seven per cent less on cheap houses and other category homes. Earlier this rate was 8% and 12% respectively. In the case of new GST rates, the builders will no longer be able to demand input tax credits (GST refunds) on their manufacturing content.
Definition of cheap home
According to the government, houses up to 45 lakh will be in the category of cheap houses. Under this, houses of 60 sqm corp area in the metros of the country, including NCR, will come in the category of cheap houses. While in other cities and villages, 90 sqm corpate area houses will come in the category of cheap houses. Noida, Greater Noida, Ghaziabad, Faridabad and Gururgram will come under Delhi-NCR.