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RM Updates

New GST Rate for a Better Tomorrow in Real Estate – RealtyMyths

Mr Rishi Jain, Managing Director, Jain Group

Mr Rishi Jain, Managing Director, Jain Group

One of the most important things that a person can aspire for is – having their own home. Home, just after food and clothing are the most basic and yet the most aspiring element of someone’s life as most people buy homes only once in their lives.

Normally, people shortlist homes based on few parameters – like the location, the amenities and facilities or other USPs that a project offers or even distance from some places – like schools, colleges, local market, hospitals, shopping enclaves etc. But, most of the times, the factor that plays the biggest catalyst is – Price. For the middle-income group (MIG) segment of India, the price is the most important factor which makes people decide on actually buying the homes.

To increase demand in the real estate sector, the GST Council, on February 24, 2019, have decided to cut off the tax rates which will be applicable from 1st April 2019. The under-construction properties are classified under two categories for the purpose of levy of GST: Affordable and Regular, and the new GST rate applicable for under construction apartment under affordable segment would be 1% and for the regular segment, 5%. This is going to bring a very positive change in the real estate market as the home buyers have to spend lesser amount for home buying now. With lesser amount to be spent for home buying, it is expected that more buyers would be interested in their own homes, which would give a much-needed boost to the real estate sector, all across the nation.

With HIRA implemented in the state, home buyers would get projects that would totally justify the amount as they would pay as per their usage and we can very safely say that with the new implemented GST slab, people can have their dream homes without any pinch at the pocket.

We, at Jain Group, are extremely excited to welcome this change and are hoping for an improved market scenario.

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