finance minister arun jaitley
Finance Minister Arun Jaitley

The Indian government on Sunday slashed the Goods and Services Tax (GST) rates on under-construction houses in a bid to achieve the feat of providing “Housing for All” by the year 2022 and make urban areas free of slums.

For the affordable housing properties, those measuring up to 90 square meters in smaller cities and 60 square meters in big cities and valuing up to 4.5 million Indian Rupees (63,341 U.S. dollars), the GST rate has been slashed from the existing 8 percent to just 1 percent. And, for the housing properties above the affordable segment, the GST rate has been slashed from the existing 12 percent to 5 percent.

The new GST rates would come into effect from April 1. The decision to lower the GST rates was taken at the 33rd meeting of the GST council held in New Delhi on Sunday. Announcing the new rates, Finance Minister Arun Jaitley said, “This (GST reduction) decision will certainly give boost to construction sector.”

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