Finance Minister Arun Jaitley earlier in the December said that the GST council in its next meeting to be scheduled in January would consider rationalization of tax rates on residential properties and raising the threshold limit for Micro, Small & Medium Enterprises from the current Rs20 lakh.
Accordingly, the GST Council considered proposals to reduce GST rate applicable on real estate. This move is expected to make flats cheaper soon. The central government reportedly plans to bring under-construction flats under the 5% slab, and to avail this rate, builders have to source their building material from GST paying suppliers.
Responding positively to this step, the stocks in realty sector are sizzling on bourses on Tuesday. Nifty realty index is the leading sectoral gainer in trade during mid-market, Tuesday, followed by Nifty Pharma and PSU Bank.
Looking into the gaining constituents in the realty index, prestige estate projects gains 4.75 percent, while Oberoi Realty adds 2.87 percent, DLF gains 1.89 percent Indiabulls Real Estate and Sobha Limited trade higher by 1.26 percent each, among others, in the first session of the year 2019.
Meanwhile, the benchmark indices were experiencing selling pressures with Nifty50 trading at 10,824-levels, down by 38 points and the Sensex at 35,948-marks, down by 119 points at the mid-noon hours of trade, Tuesday.