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Prices of Multistorey flats / apartments likely to reduce after GST
Posted on: 03/Jul/2017 2:42:15 PM
As GST has come into effect, there is a situation where the people interested in buying multistorey flats / apartments have to spend more.
As regards the multistorey flats / apartments, the prevailing tax rate of 5.5% has been increased to the GST slab of 12%.
In case these flats had been bought before GST implementation, only 5.5% taxes would have been paid – but now, 12% tax has to be paid leading to additional expenditure.
After the introduction of GST, there is a provision to deduct the GST already paid for buying the various construction materials. So, this will reduce the total tax while buying multistorey flats / apartments
Though real estate taxes are under the 18% GST slab, as 33.33% of the tax for the land value is reduced, it may be considered only as a 12% GST slab.
