Indians are eagerly waiting for February 1 to see what gifts the Centre has to offer in its Budget 2018. In the 'Home' front, there is news that there will be reduced GST for home buyers. But this has come with some conditions, here is the complete report.
Following the last Goods and Services Tax (GST) Council's meet, those who want to purchase houses can heave a sigh of relief as they will be paying lower interest under the Pradhan Mantri Awas Yojana's (PMAY) Credit Linked Subsidy Scheme (CLSS). Yes, the scheme is applicable only for those buying houses under the PMAY and making use of the CLS Scheme.
According to the new rules, henceforth (starting from February 1), there will be less incidence of Goods and Services Tax for houses brought under CLSS. Those falling under this category will just have to pay 8 percent GST instead of 12 percent. Moreover, this scheme applies to the under-construction houses as well as acquired ones but purchased only under CLSS.
Here is the statement copy:
Accordingly, the rate cut is applicable for the Economically Weaker Sections (EWS), Lower Income Group (LIG), Middle Income Group-1 (MlG-1) and Middle Income Group-2 (MlG-2) under the Housing for All (Urban) Mission/PMAY (Urban).