In its 56th meeting, the GST Council has made a significant decision to reduce the tax on construction materials.
This move brings direct benefits to people who are building their own houses, especially in rural areas.
It is expected to lower the overall cost of construction, making it easier and more affordable for individuals planning to construct their homes independently.
Flat Buyers May Not Get the Same Benefit
While the decision is good news for those building homes on their own, the situation is more complicated for apartment or flat buyers.
The benefit of reduced GST may not automatically reach those buying ready-made flats from builders.
Whether or not builders will pass on the tax benefit to homebuyers remains uncertain.
Similarly, the impact of this tax cut on commercial buildings is expected to be limited, meaning businesses or developers constructing shops or office spaces might not see significant savings.
Summary
Good news for self-home builders, especially in rural areas.
Unclear benefit for flat buyers – depends on whether builders pass on the relief.
Limited impact on commercial construction projects.
