Affordable houses to get a boost under GST

New Delhi June 30: A good news for home buyers. Houses built under affordable housing scheme will become cheaper under GST regime.

Luxury properties, houses constructed at prime locations prices will increase because the land rates are high when the new tax is implemented.

* Construction sector will be levied 12 % GST.

* 28 % GST will be applicable on cement, ceramic, tiles, building
blocks and bricks, prefab structural components for buildings.

* 18 % GST will be applicable on iron and steel.

* 12 % GST will be applicable to Work Contracts.

* Pradhanmantri Awas Yojna (PMAY) has been exempted from GST.

* Input tax credit has been permitted for the real estate sector.

However, experts say that normal customers must pay 6 % more under GST. However, developers will reduce per sq ft rate to pass on input tax credit rate so the net impact would be neutral.