For better results of GST implementation, industry experts continue to demand stamp duty, which is a state levy, on property deals be subsumed under the new regime. Affordable housing has received a boost over the past year, on account of benefits of lower tax rate and input tax credit. Being out of GST ambit, demand for ready-to-occupy properties is also growing. In tandem with its stated objective of ‘Housing for All’ by 2022, GST rate for affordable housing was cut to 8% with effect from January 25. The reduced tax is applicable to up to 645 sq ft homes purchased through the credit linked subsidy scheme under the Prime Minister Awas Yojana, as per changes recommended at the GST Council meeting. Affordable housing has received encouragement through reduction in tax rate. Ready-to-move-in properties have also benefited as more homebuyers are showing preference towards buying such apartments to save on GST. Ready properties with occupation certificates are out of GST ambit and are therefore tax-exempt. On the other hand, under-construction properties attract 12% GST with full input tax credit.
For better results of GST implementation, GST regime, we feel we may see the to 49,945 units. Real estate housing market industry experts continue to demand stamp overall cost of property purchase come across India continues to stabilize with duty, which is a state levy, on property deals down. Never-theless, sales of housing developers in this quarter (April-June), be subsumed under the new regime. Also all units across nine major cities in the clearing their older inventories and the input tax credits need to be passed on. country grew by 15 % during the April- launching several new projects. The positive Although it was anticipated GST would June period compared to the previous trend is expected
reduce property prices pan-India and better January-March quarter. The total to continue in the sales, we are hoping to see better impacts in absorption of housing units increased by following quarters coming years. If the stamp duty and 15% across top nine cities in India in the with new launches registration fees are subsumed under the second quarter of 2018 from 43,246 units to pick up in 2018.