1st July, 2017 was the date that GST was introduced to India by the current financial minister, Arun Jaitley. With it came a slew of price rate changes on many things, including real estate, one of the most important sectors that contribute to the economy of India.
A year and a half ago, it was declared that all properties under construction will be charged at 12% of the property value. The affordable housing sector was also charged with 8% GST. This meant that home buyers had to pay more amount than the property value.
Despite the unwillingness, the sector had to brace themselves for the impending difficulties. However, on 1st February, it was declared by the council that the GST rates on real estate would be slashed.
In this year’s Union Budget, it was declared that from April 1st onwards, the new GST rates for under-construction and affordable housing will be 5% and 1% respectively.
For those who've also wanted to buy a luxury home, this change is welcoming more than ever. With the rate cut, this gives home buyers either the chance to invest in a great luxury home or invest in a second one too. An advantage that comes with purchasing an under-construction property like Omkar Alta Monte or Omkar Vive is the sheer opulence they offer with 1-3 BHKs. Also, by the time one moves in, there’d be plenty of developments that would’ve taken place in the location of the project. In case of Omkar Alta Monte, there’s an upcoming metro station that’ll be only 2 minutes away.
For realtors, thanks to other benefits like being exempt from paying tax on notional income, they have more time to figure out how to approach a bigger pool of homebuyers who were once apprehensive about their home buying goals.
Omkar Realtors and Developers, one of the leading realtors in Mumbai, is pleased to welcome the rate cut. With a rock-solid reputation and homes made with utmost dexterity backed with the GST rate cut, the maximum city will be able to welcome many aspiring home owners to their dream homes.
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