Good news from GST Council meet - Big relief for homebuyers!

In a bid to provide relief to the lower middle class and middle class homebuyers and turn the tide in sync with the Modi government's most ambitious 'housing for all by 2022' dream, the 33rd GST council meeting held on February 24 cut down the rates from 8 per cent to 1 per cent on the affordable housing sector. The industry insiders say the move is a major boost for the middle-class segment which actually is the masses, whom the 'housing for all' scheme targets to benefit by 2022.

Speaking on the matter Pradeep Aggarwal, Chairman, National Council on Affordable Housing at ASSOCHAM told, “Recommendations from the GST council is a major step towards housing for all. It’s a big step towards a better future of the masses. We applaud the step of reducing GST to 1 per cent for affordable; to be precise any unit costing less than 45 lacs and smaller than 60 sq. Meter in metro and 90 sq. Meter in non- metro which again is very thoughtful. This is a major boost for the middle & neo class segment which actually are the masses.”

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Hailing the government move Manoj Gaur, Vice President, CREDAI — national chapter told, “GST council’s decision to reduce GST on affordable housing to 1 per cent is a welcome step for the entire sector. The recommendations are in sync with the government’s push for housing for all and also for the ongoing projects. These steps would surely ease up buying for home seekers, augmenting the demand in all segments.” 

Commenting upon the benefit to a potential buyer through this rate slash Shishir Baijal, Chairman & Managing Director, Knight Frank India told, "The reduction in GST can potentially reduce the buyer's payout by 6 per cent to 7 per cent on the overall purchase, depending on the category." He said that the low outflows will push demand in the segment which, in turn, will keep developers committed to building more affordable homes. The government is steadfastly moving towards achieving its target towards Housing for All 2022.

Lauding the rate cut in affordable housing segment T Chitty Babu, Chairman and CEO, Akshaya Pvt Ltd told, "The change in the definition of affordable housing is certainly going to improve the buyer sentiments." He said in the new scenario, homebuyers will be able to save a lot on their home investments depending on the value of the homes due to the revision in GST. 

Terming the Modi government's decision as big boost to the affordability of home buyers Prateek Mittal, Executive Director, Sushma Group told, “The GST council’s recommendations are a big boost to affordability. Though we are expecting that the prices may go up marginally because input tax credit cannot be claimed. Exemption of intermediate tax on development rights was also a much-required step.” 

Standing in sync with Mittal Kamal Taneja, MD, TDI Infracorp told, "The reduction in GST will benefit parts of Delhi-NCR, which will see fresh sales. Applicable GST at 1 percent for all properties up to 45 lacs and carpet of 90 Sqm will cover the majority of existing inventory and fresh launches."