Govt panel favours lowering of GST rates on under-construction houses

At present, GST is levied at 12% with ITC on payments made for under-construction property

The struggles of India’s beleaguered real estate sector might end soon. A group of ministers on Friday batted for a cut in the goods and services tax (GST) rates on under-construction houses. 

At its first meeting here, the panel, headed by Gujarat Deputy Chief Minister Nitin Patel, favoured lowering of GST rates on under-construction houses, from 12 per cent with input tax credit (ITC) to 5 per cent without ITC. Similarly, it pitched for reducing the rate for under-construction affordable houses to 3 per cent without input tax credit, from the current 8 per cent. 

Some experts say this will