GST relief on flats and homes

One of the ways to fight the symptoms of recession or slump of demand in the real eState sector following demonetization and measures to contain generation of black money, is the relief given by the Central Government by way of slashing tax rate structure for under- construction flats to 5% and affordable homes to 1 percent. These rates would be effective from April 1 this year. There were suggestions from many quarters in respect of taking up such measures in real eState sector.
This may, prima facie, not look very attractive but when analysed in terms of the existing cost of flats and homes , it is really a great relief and should give a jerk to the near dormancy in the otherwise booming real State sector. The existing system in terms of Goods and Services Tax is levied at 12 percent with input tax credit (ITC) on payments made for under- construction property or ready to move in flats where completion certificate is not issued at the time of sale . For affordable housing units, the existing rate is 8 percent. ITC is completely sought to be removed, the rates would be just 5 percent for normal housing units and 1 percent for affordable housing which definitely would lead towards fulfilment of owning a ‘house of own’ by many aspirants . Embarking upon ‘Housing for all’ vision by the Government would make a mark in the entire scenario of fighting housing problem in the country.