In Karnataka, buying homes to get cheaper under GST
Hasmukh Adhia says apartments have been put under 12 per cent GST slab that will lessen cost.
Mumbai: Revenue Secretary Hasmukh Adhia has said that real the estate sector was one of the largest beneficiaries of Goods and Services Tax or GST regime, according to a report in The Economic Times.
Adhia further elaborated in the news article that apartments have been put under 12 per cent GST slab which will subsequently extend its benefits to home buyers.
State VAT in Karnataka currently defines a works contract component for flats. These home units are taxed 4 per cent on the total value of the contract under the composition scheme, or at 14.5 per cent on the value of the material with input tax credits.
"There is a separate 15 per cent tax on the services that are availed -- like architect or transport -- for building the apartment, and the same goes to the government of India," the report said.
According to Adhia, finished apartments will get cheaper given the input tax credit developers of a property would get. These apartments will also come under the 12 per cent tax rate under the GST regime.