GST rate cut expected to give realty stocks a big booster
In a big boost to real estate sector, the GST Council on Sunday slashed tax rates on under-construction housing properties to 5 per cent without input tax credit from existing 12 per cent, Finance Minister Arun Jaitley said. The move is likely to give a boost to realty stocks in Monday’s market. Last week, several realty stocks cracked following the council’s decision to defer the propose rate cut. This was a long-pending demand from the real estate players, which have been seeing sluggish demand. Analysts said the move would boost demand for under-construction houses. Among other big announcements, the council also cut GST rates on affordable housing to 1 per cent from the current 8 per cent and expanded the scope of affordable housing to those costing up to Rs 45 lakh and measuring 60 sq metre in metros and 90 sq metre in non-metro cities.
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