GST : A significant impact to buyers and builders ?>

GST : A significant impact to buyers and builders

As per the latest GST council meeting recently, GST rates of all the under-construction houses or apartments are reduced to 5% (from the present 12%) and 1% on affordable housing which is currently 8% has redefined the buying capacity of affordable housing. In a tier 1city, a residential space of 60sq metres costing around 45 lakhs is said to be an affordable house. This recent reduction of GST has made a significant impact on both buyers and builders. The same is considered as a boost the real estate market. The net discount on affordable houses is coming to be approximately 6 lakhs which is a big relief for home buyers.

This act will result inincreased demand for the real estate market; also it has changed the price range for the better, because the price range is now reduced for under construction and completed projects. After the implementation of this scheme, the buyer will be entitled to an additional discount of 14 per cent. The beneficiaries under the Pradhan Mantri Awas Yojana scheme would be eligible for a subsidy of up to Rs 2.67 lakhs on their home loan. This scheme would benefit EWS / LIG households earning up to Rs 6 lakh per annum who are first time home buyers. Utilise this amazingopportunity and book your dream home with a reputed builder,having a good track record in affordable housing projects.

The tentative calculations are simplified in the table provided below.

Price (Before) Price (Now) PMAY* Net Payable Total Saving
Cost 30,00,000 30,00,000
GST 2,40,000 30,000 2,67,000
Total 32,40,000 30,30,000 2,67,000 27,63,000 14.72%

Notes:

*Considering customer falls under PMAY scheme conditions

*Carpet area of the house to be as per PMAY

ACE offers 2, 3 and 4 BHK apartments in Noida and other locations at a reasonable and affordable price. The projects offered by ACE are loaded with best facilities and amenities like club house, swimming pool, basketball court, amphitheatre, relaxing areas, kids play area to name a few. The proven history of delivering every project before time has already made Ace a giant in the real estate industry.

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