Property developers and consultants Sunday hailed the GST reduction on housing sales and termed the move as a “revolutionary step”, saying it will boost sentiments and help the cash-starved sector in clearing around 6 lakh unsold homes. The GST Council Sunday decided to cut GST rate on affordable homes to 1 % without input tax credit (ITC) from earlier 8 % with ITC. The GST on under-construction flats, which are not under the affordable housing segment, has been reduced to 5 % without ITC from 12 % earlier with ITC. While most players welcomed the decision, some real estate developers, however, said that housing prices may increase as there will be no input tax credit available to realty firms.

(Live Mint)