4 Facts About GST That Will Help You Make a Better Decision When Buying 2 BHK Flats in Matunga

Individuals living in Mumbai need to take a lot of factors into consideration while investing in new residential projects. If you have started your apartment search recently then you must have come across GST in every proposed billing. The introduction of GST has eased down the process to buy residential projects in Mumbai. But, since a lot is not known about this new term, buyers often end up confused. 

If you are planning to buy 2 BHK flats in Matunga and GST terms and conditions are becoming a hurdle then here are a few facts that you should consider –

GST rates and abatement of land

GST rates 12% and land abatement rates 50% out of which 25% is the rate of lands and remaining 25% is the rate of goods. Hence, the average cost calculated comes out to be 14%. Thus, the rate of 2 BHK flats in Matunga will expect to cost higher after GST.

Impact of GST on Under-construction property

A buyer has to pay both VAT and service tax of 4.5% for an under construction property. Here, the stamp duty is not included in the GST. The combination of all three makes the property costly.

Legal advantage of GST

GST bill comes with an anti-profiteering clause. This clause makes it mandatory to pass the tax reduction benefit to the end user. This means that your selected residential projects in Mumbai will not come with high rates with excuse of GST because the law will prevent the builder from doing so.

Impact of GST on developers

GST improves the profit earned by developers due to the facility of claim of input tax credit. This indirectly pushes them to provide better facilities to the buyers.