Will GST reduce home prices?
Reduced GST tax rates will come into effect from 1 April, so wait for a month before you buy realty.
The government has made buying homes easier by slashing the Goods and Services Tax (GST) tax on under-construction properties.
Rates have been cut from 8% to 1% for affordable homes and from 12% to 5% for regular units.
How much is GST on a new house?
The Goods and Services Tax (GST) Council at its meeting here on Sunday reduced the GST rate on under-construction houses. For flats priced more than Rs 45 lakh, the new GST rate applicable from April 1, 2019, stands at 5 per cent, against 12 per cent currently.
Is there GST on buying a house?
If you buy or build a brand new home or condo, you need to pay the federal goods and services tax (GST) on the purchase price – or the harmonized sales tax (HST), if you live in a province that has it. Now, there’s one of two ways you’ll have to pay this: with cash on closing day, or through your mortgage.
Is there GST on sale of residential property?
GST in real estate sales
GST is NOT payable on the sale and purchase of “residential premises”, unless the property being sold is new property. So, the sale of “second-hand” residential real estate (e.g. a home or apartment that someone has lived in) will rarely trigger a GST liability.