If you are interested in buying properties in Pune then this is the right time for you as the under construction housing properties has reduced tax rates by the GST council on Sunday. This has been beneficial to he property buyers. Among the various real estate developers in Pune, Mittal Brothers offers you lots of options especially the HighMont under construction projects in Hinjewadi, Pune
This is definitely a great move taken by our honorable finance minister Arun Jaitley and he said that the current 12 percent rates on the under construction project have been brought down to 5 percent without an input tax credit.
Now the properties in Pune have become quite affordable because the council has also reduced the GST rates from the current 8 percent and enhanced the scope of purchase to Rs 45 lac and with a square foot of about 90 units.
In April 1st, 2019, new tax rates will be revised.
The completion certificate has not been provided at the time of sale and the builders cannot claim an input tax credit (ITC) under the new GST rates.
The definition of reasonable purchase is reconsidered by the GST Council by enhancing the ambit of the segment on a twin basis. This beneficial act has been done in various metro cities like Kolkata, Delhi NCR region, Mumbai MMR region, Hyderabad, and Bangalore which contains properties with a 60 square meters but now has a sale value of Rs 45 lac.
The carpet area in non-metro cities is about 90 square meter and it has a sale value of Rs 45 lac which is quite affordable.
The intermediate tax was also coined by GST council it was based on development rights like JDA, TDR, lease (premium), FSI must be applicable only for such residential property where GST is payable. With the help of an officers committee, the finer details of the scheme will be managed which will then be authorized by GST Council. The problem of cash flow will be addressed by the exemption that is the real estate sector said the Ministry in Statement.
Tax structure and tax compliance will be revised with the help of this change which is quite helpful for the builders and this buyer. This was the ultimate motto of Indian Government. In the next GST council meeting, the matter related to the GST rate on lotteries will be considered which will further help the under-construction project in Hinjewadi, Pune.