Masters India

Impact of 7% GST rate slash on under construction & affordable houses

Prakash Matre
Prakash Matre at March 21, 2023

Know How GST Affected on Under Construction & Affordable Houses

The Finance Minister of India, Mr Arun Jaitely informed in 33rd GST Council meeting that there will be a 7% slash in the rate of both under construction houses and affordable housing W.E.F. 1st April 2019. Here, we will know gst on under construction flats pdf.

Currently, the GST rate on under construction houses is 12% and the affordable housing scheme is 8% which will be reduced to 5% and 1% respectively.

Affordable housing definition as per GST Council


Metro Cities

Non Metro Cities

Carpet Area

60 Square Meter

90 Square Meter


45 Lakhs INR


  • ITC shall not be allowed on labour cost and input raw material.
  • Property on which GST is payable will be exempted from tax Intermediate Tax such as TDR, Premium on the lease, FSI, JDR.

Impact on the Real estate sector

Here is the impact of GST rate slash on the real estate sector:

  • Tax compliance will become simpler
  • Unutilized ITC will be removed which is currently becoming the part of the cost
  • Increase in the sale of property due to a reduction in the GST rate. Hence, sorting out the cash flow crunches
  • More employment opportunities as the builder will invest more on the real estate


Impact on the end consumer

Here is some of the important impact on the end consumer:

  • The cheaper rate of flats due to a 7% reduction in the GST rate
  • Issues relating to the transfer of ITC benefit will get resolved


“The information contained herein is not intended to be a source of advice with respect to the material presented, and the information and/or documents contained in this article do not constitute any personal advice.”

Rate your experience
4.50 / 5. Vote count: 145
GST Software
Best GST Software for Return Filing & Billing in India

Check out other Similar Posts

No Data found
No Blogs to show
Need Help in Getting Started?
Make smart decision to replace your manual work with modern solution and improve your business output
Request Callback
Continue Browsing
Subscribe Now!
Receive GST, E way bill, e-Invoice, Accounts payable and OCR updates from our experts.
Chat with us

😄Hello. Welcome to Masters India! I'm here to answer any questions you might have about Masters India Products & APIs. What brings you to our website today?

Looking for

GST Software

E-Way Bill Software

E-Invoice Software

BOE TO Excel Conversion

Accounts Payable Software

Invoice OCR Software/APIs


GST Verification API

E-Way Bill API

E-Invoicing API

KSA E-Invoice APIs

Vehicle tracking

Vendor Verification API

Other Requirement