The GST Council on February 24 slashed the tax rate on under-construction residential properties to 5 percent from the earlier 18 percent and for affordable houses to 1 percent from 8 percent. The relief is likely to benefit home buyers, real estate developers as well as housing finance companies.
Consumers have complained that the builders haven’t been passing the input tax credits; hence the GST Council has done away with ITC.
Sakshi Batra’s conversation with Moneycontrol Deputy Executive Editor Gaurav Choudhury will explain the extent of the benefit. A slew of changes is coming in at the 32nd meeting at the GST Council today. This is the final huddle before the interim Budget.