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GST RATE FOR BUILDERS - confusion between applicable rate 8 or 12
Unless the project is approved under PMAY by town planning or governing authority, in general rate remains 12% only.
GST on Affordable Homes Slashed to 8%
To avail a home loan through this scheme, the government has slashed the GST from 12% to 8%.
Any person who is buying a home for the first time will have to pay an 8% GST, provided he/she takes a home loan through the Credit Linked Subsidy Scheme (CLSS) under the PMAY.
There are certain eligibility criteria to be fulfilled in order to successfully avail a home loan through the CLSS. For instance, the applicant’s family income should not be above Rs.18 lakh per annum and the maximum carpet area (area enclosed within the walls) eligible for the subsidy is 150 sqm. The tax benefit will be available for the low-cost housing projects as well. Anyone who does not meet the aforementioned requirements will have to pay 12% GST.
applicants have been branched into six distinct groups
| Section | Eligibility Details |
|---|---|
| Economically Weaker Section (EWS) | People who earn an annual household income less than Rs.3 lakh come under the EWS category. However, an applicant claiming to be from EWS needs to provide relevant proof to the government to ascertain their claims. |
| Light Income Group (LIG) | People that fall under LIG category usually have an annual household income ranging between Rs.3 lakh to 6 lakh. Again, to be eligible for consideration, they need to provide sufficient proof of their economic standing. |
| Medium Income Group (MIG1) | Those who earn an annual household income below Rs.12 lakh fall under the MIG1 category. These people can avail loans of up to Rs.9 lakh for the construction of a residence. |
| Medium Income Group (MIG2) | Individuals earning an annual household income between Rs.12 to Rs.18 lakh will fall under MIG2 of the PMAY scheme. These people can avail loans of up to Rs.12 lakh. |
| Minorities | People hailing from minority groups like SC/ST/OBC will fall under minorities. To be considered under the PMAY scheme, these people need to meet to provide relevant caste and income certificates. |
| Women | Women belonging to EWS/LIG categories will be considered if they apply under the PMAY scheme. |
Besides this, there is a basic requirement an applicant has to meet. For instance, if the beneficiary is a family, it must comprise of a husband, wife, and unmarried children. Also, no person from the family should own a house in their name.
For more details refer:: 1. pradhan-mantri-awas-yojana
GST on Affordable Homes Slashed to 8%
To avail a home loan through this scheme, the government has slashed the GST from 12% to 8%.
Any person who is buying a home for the first time will have to pay an 8% GST, provided he/she takes a home loan through the Credit Linked Subsidy Scheme (CLSS) under the PMAY.
There are certain eligibility criteria to be fulfilled in order to successfully avail a home loan through the CLSS. For instance, the applicant’s family income should not be above Rs.18 lakh per annum and the maximum carpet area (area enclosed within the walls) eligible for the subsidy is 150 sqm. The tax benefit will be available for the low-cost housing projects as well. Anyone who does not meet the aforementioned requirements will have to pay 12% GST.
applicants have been branched into six distinct groups
| Section | Eligibility Details |
|---|---|
| Economically Weaker Section (EWS) | People who earn an annual household income less than Rs.3 lakh come under the EWS category. However, an applicant claiming to be from EWS needs to provide relevant proof to the government to ascertain their claims. |
| Light Income Group (LIG) | People that fall under LIG category usually have an annual household income ranging between Rs.3 lakh to 6 lakh. Again, to be eligible for consideration, they need to provide sufficient proof of their economic standing. |
| Medium Income Group (MIG1) | Those who earn an annual household income below Rs.12 lakh fall under the MIG1 category. These people can avail loans of up to Rs.9 lakh for the construction of a residence. |
| Medium Income Group (MIG2) | Individuals earning an annual household income between Rs.12 to Rs.18 lakh will fall under MIG2 of the PMAY scheme. These people can avail loans of up to Rs.12 lakh. |
| Minorities | People hailing from minority groups like SC/ST/OBC will fall under minorities. To be considered under the PMAY scheme, these people need to meet to provide relevant caste and income certificates. |
| Women | Women belonging to EWS/LIG categories will be considered if they apply under the PMAY scheme. |
Besides this, there is a basic requirement an applicant has to meet. For instance, if the beneficiary is a family, it must comprise of a husband, wife, and unmarried children. Also, no person from the family should own a house in their name.
For more details refer:: 1. pradhan-mantri-awas-yojana
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