Customers who buy ready-to-move flats have to pay a relatively high price for this. Under the GST, the property will be given to the purchaser at a lower tax in the form of lower prices or installments. Goods and service tax, which is applicable in the country, will benefit the customers who invest in under-construction properties instead of ready-to-move houses under the One Nation One Tax system.
The first 18 percent GST rate has been fixed on under-construction properties. But such properties will be taxed at 12 percent. But people whose property is being used for commercial use or industry and their annual income is more than 20 lakh rupees, have to pay 18 percent tax.
Before the coming of GST, many tax builders had to pay, they are Value Added Tax (VAT), Central Excise, Entry Tax, Service Tax, etc. The cost that the builders incurred on these taxes was transferred to the property buyers. But later everyone got a single tax GST.
On an updated basis, 60 sqm area in many metros and 90 sqm area in the non-metro city and flats priced up to about 45 lakh rupees will add 1% percent GST. At the same time, 5% percent GST will have to be given to flats with more area and higher prices.
Till some time ago, the Union Government has reduced the GST rates for real estate and after this, there was no hope of reducing it again in this sector. But at a time when after the coronavirus epidemic economic crisis started to surround it, due to this, the sale of houses has come down.