GST reduced for houses under Affordable Housing Scheme

New Delhi Jan 26: In a Move to encourage affordable housing and to offer relief to first time home buyers the government has reduced the GST from 12 percent to 8 percent for houses purchased using the credit-linked subsidy scheme (CLSS) under Pradhan Mantri Awas Yojna.

Sources said that "a first-time homebuyer with a family income of up to Rs 18 lakh per annum will be eligible for a benefit of up to Rs 2.7 lakh while buying a house or apartment of up to 150 square meters (1,615 sq ft) carpet area under the Credit-Linked Subsidy Scheme."

Officials have said that "those who do not qualify for CLSS will continue to pay GST at 12 percent for the same house.The GST benefit will also be extended to low-cost housing projects having the infrastructure status where the maximum unit size in the project is a carpet area of 646sq ft. The first-home condition on the buyer will not be applicable in such cases. "