Muscat: Indian government on Sunday slashed tax rates on under-construction housing properties to 5 percent without input tax credit, from the existing 12 percent, in a big relief to home buyers.
The new tax rates will come into effect from April 1, 2019.
This will provide a big relief to NRIs living in Oman who are looking to buy houses in India.
In a tweet, Finance Minister Arun Jaitley said: “In its 33rd meeting the GST Council has accorded big relief to Real Estate Sector. GST rate on affordable housing has been reduced to 1% from 8% & for others from 12% to 5% for both without ITC. This will give boost to housing for all & fulfill aspirations of Neo/Middle classes.”
BJP president Amit Shah, tweeted: “Housing for all is not just a slogan but a commitment for Modi government. Reducing GST rate on affordable housing to 1% from 8% and for others from 12% to 5%, both without ITC, has made owning a house a reality for the neo-middle class.”
Currently, GST is levied at 12 percent on payments made for under-construction property or ready-to-move-in flats. Twelve percent is also levied in cases where completion certificate is not issued at the time of sale.
No tax is levied in cases where completion certificate has been issued at the time of sale.