GST cut from 12% to 5% on houses under construction

Demand for residential properties is expected to receive a major boost following the government’s decision to cut the goods & services tax (GST) rates for under-construction projects to 5 per cent from effective rate of 12 per cent. In a major push to stated objective of ‘Housing For All by 2022’, the government has reduced GST to marginal 1 per cent for affordable housing while revising the definition of such homes.