The Savings from NO GST Homes
GST or Goods and Services Tax is an indirect tax used in India. It applies to real estate too — both commercial and residential — and can lead to added costs.
New GST rates were announced for homes. 1% for affordable housing projects and 5% for others — this was a significant reduction from the current 8% and 12% respectively.
GST savings can make a huge difference in your housing budget. Here’s how:
Save more on taxes
As mentioned above, during the pandemic the GST rates were lowered to help the real estate sector revive. The houses priced below ₹45 lakh are eligible for the concessional 1% tax rate on affordable houses.
Homes that fall above the ₹45 lakhs category would have to pay GST of about 5-12%. This reduced tax savings in itself is a boon.
Use initial savings to decorate home
The savings from your GST can be used for home decoration. For example, if you buy an apartment worth ₹65 lakh you would have to pay about ₹3-3.5 lakhs as GST (considering an approximate 5% rate).
However, if you buy a GST-FREE home, you would save this amount. So, now you have a great budget to decorate your home!
Use it to pay stamp duty
Stamp duty is another added expense when you buy a house. Across India, 5% to 7% of the total market value of the property is charged as stamp duty. About 1% is charged as a registration fee.
This amount is equivalent to that of GST. So, by investing in a GST-free home, you can prevent a huge dent in your budget and use the saved amount to pay stamp-duty!
Buy a better home
These days, the price gap between under-construction and completed projects has come down. As a result, it has become much more affordable to buy a ready-move-in apartment too.
Even a 3-4% difference matters! With GST-Free real estate, you can shift to a ready home instead of having to wait!
It also gives you the option to invest in a better home — in terms of locality, builder quality, etc. Of course, one can customize their home by opting for under-construction properties.
The savings from GST can be used to create a personalized home experience.
No GST or GST-FREE homes are a boon amidst this economic slowdown. This not only helps home-owners and home-buyers in multiple ways — but it also helps builders & developers get back on their feet post the pandemic.
Go ahead and don’t miss out on a good deal — because NOW is the right time to invest in a home!