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Goa CM: Ministers Back Minimal GST on Housing

2024-08-27

Goa Chief Minister Pramod Sawant revealed that a Group of Ministers has advocated for a bare minimum Goods and Services Tax (GST) on housing projects. This recommendation aims to enhance housing affordability, making it easier for homebuyers to purchase properties across India. The proposal is being considered to provide relief to the real estate sector, which has faced challenges from rising costs and slowed demand in certain areas.

The Group of Ministers, formed to review taxation policies related to the housing sector, is reportedly in favor of lowering GST rates to stimulate growth in the residential property market. Lower taxes could not only attract more homebuyers but also encourage developers to expedite project completions.

The real estate industry has been lobbying for a reduction in GST rates on under-construction properties, which are currently taxed at higher rates than ready-to-move-in homes. By reducing GST, the government aims to make housing more affordable and accessible to middle-income and first-time homebuyers.

This potential policy change reflects the government?s broader efforts to support the real estate sector and meet its housing for all objectives. A final decision on the matter is expected after further deliberations with stakeholders.

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