Under-construction Units – may see GST rate cut off

The GST council having their meet on January 10 to discuss lowering down GST on under construction Apartments and houses up to 5 per cent, also hiking exemption threshold for small and medium enterprises.

The GST council setting on 10^th of January 2019 for their 32^nd meeting, which will be chaired by Finance Minister Arun Jaitley and comprises their state counterparts. After the recent council meeting, Mr. Arun Jaitley said that on the next meet would be consider rationalisation of tax rates on residential properties. And also, he added that raising the threshold limit for MSME’s from the current 20 Lakh rupees.

As per reports, the GST council is likely to consider lowering GST on under construction flats and houses by 5 per cent, if the same happen it will be a positive move from the council and to increase in the sales ratio of real estate sector.

Currently, the Goods and Services Tax (GST) is levied at 12 per cent on payments made for under construction property and to ready to move in apartments where completion certificate has not been issued at the time of sale.

Let’s hope for the positive move by GST Council from the buyer’s & real estate sector’s view.

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