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GST impact: Affordable housing to get fillip; luxury homes to get costlier

Luxury property prices might go up marginally

real estate, housing, home, building, construction
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Tata Value Homes, a subsidiary of Tata Housing, develops affordable housing projects across the country with over 40 million square feet under development

Karan Choudhury New Delhi
The government’s initiative to make housing affordbale is set to get yet another boost under the new goods and services tax (GST) regime. However, prices of luxury properties and those being constructed at prime locations where land rates are high might go up from July 1. 

In the run-up to the GST launch, the government imposed 18 per cent GST levy on the construction sector, applicable to two-thirds of the value of the property, thereby, bringing the net rate down to 12 per cent, when calculated on the entire value.

According to government officials, the net tax incidence, therefore,

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