1. Changes in Real Estate GST rates: The GST Council in its 33rd meeting on February 24, 2019, had come up with new rates for housing units applicable from 1 April 2020, The rates got reduced to

(a) 1.5% (effective rate 1% after deducting land cost) for all affordable housing which values up to ₹45 lakhs which was 8% earlier.

(b) [email protected]% (effective 5% after deducting land cost) for all other residential housing other than affordable housing which was 12% earlier.

The latest real estate GST Regime is in favour of the buyer's decision-making process as it has subsidised the tax burden to a great extent.

2. Lacks Clarity & Burden to Real Estate developers: Due to liability onunsold properties post-cut-off date, it will burn additional costs for the Developer. Further, no clarity has been provided whether the developer is required to consider all unsold flats in a project which has been transferred to Landowner or only those unsold flats which belong to him.

Therefore, The revised GST Structure has become favourable for buyers but still, most of the buyers face difficulty in practising such complex tax norms & most of the developers have not implemented it with a seamless process as it has a lot of complications.

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