With an endeavor to provide a much needed revamp to the crippling real estate sector, the GST Council in its 34th meeting on Tuesday approved a transition plan for the execution of new tax structure for housing units.
In line with, the GST council has determined that builders can pick between paying 12percent for non-affordable houses with Input tax credit benefits or 5percent without the tax rebates for under-construction houses. Similarly, in case of affordable housing projects, builders can opt between 8 percent with tax rebates or 1 percent without it. The revised rates, without Input tax credit benefits, will apply for all projects that begin construction only after April 01, 2019.
Reactively, On Wednesday in stock market, Nifty Realty gained 2.43% at 265.30 as GST Council granted approval to a transition plan for the implementation of new tax structure for housing units.
Shares of Godrej Properties rose 8.35%, Indiabulls Real Estate went up 4.08%, Prestige Estate Projects advanced 3.85%, DLF rose 2.94%, Sun Tech rose 1.67%, Brigade Enterprise spiked 1.44% and Oberoi Realty went up 0.75%, were lead gainers of the index. However, shares of Sobha, Mahindra Lifespace Developers and Phoenix Mills dropped maximum by 0.73%.
Share benchmark indices ended on a flat note on Wednesday with Sensex rising 23 points at 38,387, while Nifty50 was down 11 points at 11,521 on Wednesday.