New GST Slab Structure: A Game-Changer for India’s Real Estate Market?
The Indian real estate sector is buzzing with news of the government’s plan to shift to a two-slab GST structure (5% and 18%). This reform aims to simplify taxation, reduce costs, and potentially make homes more affordable for buyers.
🔹 Why Does This Matter?
Currently, under-construction flats are taxed at 1% (affordable housing) and 5% (non-affordable housing) without Input Tax Credit (ITC). Add to this the high GST rates on construction materials like cement (28%) and steel (18%), and the burden often falls on buyers.
The new two-slab GST model could ease this burden by:
Lowering input costs for developers
Bringing price stability in the housing market
Making under-construction homes more attractive for buyers
Boosting confidence and transparency in real estate transactions
🔹 Impact on Homebuyers
For homebuyers, this change could mean:
✔️ Lower prices for under-construction homes
✔️ Simpler taxation system
✔️ More clarity on the total cost of ownership
🔹 Industry Experts Speak
Real estate experts believe that the GST shift could revive buyer sentiment and encourage more investments, especially in affordable and mid-segment housing. Developers may also benefit from better cash flows and reduced compliance hurdles.
📌 Want the Complete Breakdown?
We’ve created a detailed blog explaining:
Current GST rates on properties, cement, and steel
What the two-slab GST means for you
Answers to FAQs buyers are searching (GST on flats above ₹45L, resale properties, 80:20 rule, and more)
Expert insights and real-world examples
👉 Read the full blog here: https://www.77pillar.com/blog/blog-detail.php?44_How_the_New_Two-Slab_GST_Plan_is_Transforming_India%E2%80%99s_Real_Estate
Whether you’re a homebuyer, investor, or developer, this GST reform is something you cannot ignore.
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