What is reasonably priced housing as per GST – defined

With an intention to deal with the housing wants of the decrease and center earnings households, the Government of India (GoI) launched the Affordable Housing Scheme in June 2015. Compared to a standard residential housing, reasonably priced housing items are eligible for decrease Goods and Service Tax (GST), which supplies large reduction to the reasonably priced dwelling purchaser on the time of dwelling shopping for. According to tax and funding specialists, a house purchaser must pay GST on the time of purchase however it’s essential for them to know what an reasonably priced home means as per the GST.

Speaking on the definition of the reasonably priced housing that makes it eligible for decrease GST fee below GST Mumbai-based tax and funding knowledgeable Balwant Jain mentioned, “In metropolitan cities like Delhi NCR, Mumbai, Kolkata, Bengaluru, Chennai Hyderabad, etc. if the price of the housing unit is ₹45 lakh or below and the carpet area of the unit is 60 sq meter or below, then the housing unit will qualify as an affordable house in any of the metropolitan city.”

On reasonably priced housing in non-metropolitan cities Amit Gupta, Managing Director, SAG Infotech mentioned, “In non-metro cities, price of an affordable housing will be ₹45 lakh or below but the carpet area can be 90 sq meter or below.” The Managing Director of the SEBI registered tax answer agency went on so as to add that the GST relevant on an reasonably priced home is at the moment 1 per cent whereas within the case of aside from reasonably priced housing unit, relevant price of GST is 5 per cent.

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