The home buyers who have made their purchase as part of the CLSS scheme under PMAY will now have to shell out lower as GST charges which now stand lower at 8% in comparison to the previous 12%. The rates have come into effect from January 27, 2018. Under construction projects under the scheme are also eligible for the GST rate cut.
In the scheme, a person with an annual income of upto Rs. 18 lakh and buying an apartment for the first time with a carpet area of 1615 sq ft can get a rebate of as much as Rs. 2.7 lakh.
With it the real estate sector and more apparently affordable housing segment is likely to get a boost as the cost for the home buyer will drop by as much as 4%.
Nonetheless, those not falling under the CLSS guidelines will have to dole out a higher GST of 12% for the same house.