GST on Construction Materials: Everyone dreams of having their own house. In such a situation, if you are also dreaming of building a house yourself, then this news can be special for you. Let us tell you that just before the festive season, the GST Council is going to give a big relief to the real estate sector. Actually, the prices of things like cement, granite, tiles, and marble have been cut. After this, the cost of developers will be reduced. After this, those who buy and build a house will get a lot of benefits. However, experts have said that there is no hope of an immediate reduction in prices in the ongoing plan. But this plan can be implemented before the festival.
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Home buyers will benefit
Let us tell you that GST on cement has been reduced from 28 percent to 18 percent. After this, the tax on brick, tile, and sand has been reduced from 18 percent to 5 percent. This will reduce the cost of building a house. This cost will be reduced by 2 to 4 percent. According to experts, this decision of the government will benefit the middle-class people a lot.
Why are prices not coming down immediately?
According to experts, it is difficult for prices to come down immediately in the projects that are already being built and where the material has already been used. In such a situation, instead of giving direct discounts, builders will resort to discounts, easy installments, or customized offers during the festive season. At the same time, customers will get maximum benefit due to the reduction in the cost of new construction.
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How will the final profit be decided?
There is a lot of competition in the real estate sector because if a developer passes on the benefit of GST reduction to the buyers, then the rest of the companies will also have to do the same. Apart from this, transparency in prices is also maintained between the RERA rules and consumers. Experts say that even though the prices are low, in the coming time, due to market pressure and new projects, there will be a possibility of home buyers getting better deals. At the same time, the burden on the pocket will also be reduced due to the new projects coming up.