- The Group of Ministers (GoM) on Goods and Services Tax (GST) for real estate is proposing to raise the affordable housing price limit from ₹45 lakh to ₹56 lakh per unit, potentially increasing the number of homes eligible for the 1% GST rate without Input Tax Credit (ITC).
- The GoM suggests applying this new affordable housing limit uniformly across India and is considering further revisions based on an upcoming report from the Reserve Bank of India (RBI).
- The GoM is also deliberating whether GST should be applied only to the construction cost and not the land component of housing projects, with the land cost being calculated using either the circle rate or two-thirds of the unit’s total cost, whichever is higher.
Source A2ztaxcorp
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