For TDS payment assistance:
Tel: +91 22 4004 2131 / +91 99203 50878
Email: /
For Home loan assistance:
Tel: +91 8433 9996 22
Avail of a preferential corporate pricing
if your organization is listed with us.
Click here to know more.

The Impact of GST Cut on Indian Real Estate

By Runwal Group Posted On May 21, 2019
Category Market trends and insights

The Impact of GST Cut on Indian Real Estate

GST (Goods and Service Tax) was passed in the parliament on 29th March, 2017. The Act came into effect on 1st July 2017. Since its implementation, applicability of GST has been one of the key factors among a whole lot of consideration points in a home buyer’s decision-making list. On February 24, 2019, the GST council sliced tax rates for under-construction flats to 5% and affordable homes to 1%. Currently, the GST is levied at 12% with input tax credit (ITC) on payments made for under-construction property or ready-to-move-in flats, where completion certificate is not issued at the time of sale. For affordable housing units, the existing tax rate is eight per cent.

Following are the impacts that are expected from the GST cutback:

  • Benefit for the homebuyers: One of the biggest benefit that the homebuyers are ensued with the GST slash is the fact that they would now have to pay an upfront GST. 1 per cent for affordable houses and 5 per cent for non-affordable houses without worrying about getting back the input tax credit from the developer. The billing systems are expected to become more transparent.
  • Change in the definition of affordable housing: The definition of affordable housing now allows apartments of 60 sq m for metro cities and 90 sq m for non-metro cities, with a cap on the value of the asset at Rs 45 lakhs. This will bring more residential apartments across Tier II and Tier III cities under the ambit of affordable housing.
  • Good news for landlords: Those who are earning a rental income by letting out their properties for residential use will not be taxed under the GST. However, those who have given their premises on rent to be used for commercial or industrial purposes will have to pay an 18 per cent tax in case they are earning over Rs 20 lakh annually.
  • Improvement in developers in metros: Customers usually wait for under-construction projects to be completed to avoid the burden of GST. This increased the financials of under-construction projects that were constrained due to weak demand and stable real estate prices. The GST slash has benefitted both the buyers and developers as more buyers would be investing in under-construction properties that in turn improve the financial health of the developers.

With so many positive transformations entering the real estate market of India, this could be the perfect time to invest in a home. What could be more profitable than investing in the financial capital itself? Mumbai is coming up with Runwal Luxury Luxury flats in Kanjurmarg. It is an exclusive collection of 3 BHK residences especially selected from our two luxury projects – Runwal Bliss & Runwal Forests. Every aspect of life here does justice to the word ‘Luxury’. From the luxury of spacious homes, home automation, state-of-the-art modular kitchens, designer entrance lobbies to the luxury of premium amenities, dedicated CRM desk and concierge services, Runwal Luxury Collection is a boutique luxury offering for a privileged few.



The plans, specifications, images and other details herein are only indicative and subject to approval of the concerned authorities. The Group / Owner reserves the right to change any or all of these in the interest of the development, without prior notice or obligation. Artist’s impressions are used to illustrate amenities, specifications, images and other details and these may be applicable to select apartments only. Tolerance of +/- 3% is possible in the unit areas on account of design and construction variances. All brands stated are subject to final decision of the project architect. This printed material does not constitute an offer and/or contract of any type between the Group / Owner and the recipient. No booking or allotment shall be deemed to have been made on the basis of this printed material. Any Purchaser / Lessee of this development shall be governed by the terms and conditions of the agreement for sale / lease entered into between the parties, and no details mentioned in this printed material shall in any way govern such transactions unless as may be otherwise expressly provided in the agreement for sale/lease by the Group / Owner. The Group / Owner does not warrant or assume any liability or responsibility for the accuracy or completeness of any information contained herein.