Before Lok Sabha elections, Central Government Decreases GST for Under Construction Housing Property. Earlier Government take 12% Goods and Services tax for the same niche which they now decreases to 5%. Beside that Government also slashes the GST for Affordable housing to 1% which earlier was 8%.
GST council explains houses in metros worth upto Rs. 45 Lakh and constructed under 60 Square meter falls in this category. Beside that In small and medium towns houses under 90 square meter falls in this rate.
These GST rates however are applicable from April 1 this year.
Finance Minister Arun Jaitley says the new rate on one hand boost construction of Houses whereas also give some relief to Home Buyers. However, Builders are kept out of the box to avail tax credit under this new rate.
Beside the new GST rate for under construction housing property, GST council says the new GST rate for lottery is not decided yet. Right now, the GST rate for state government operated lottery scheme is 12%. However, the GST rate for State government authorized lottery is 28%.