Home Construction Cheaper:

There is good news for those thinking of buying or building their own homes. The government is planning to reduce GST rates on certain building materials soon, which could bring down construction costs and, in turn, the prices of houses. This is expected to benefit the middle and lower-income groups who dream of owning a home.

Home Construction Cheaper:

Currently, various building materials like cement, steel, tiles, and paints are taxed at different GST rates. For example, cement and paints are taxed up to 28%, while steel is taxed at 18%. These high taxes increase the overall construction cost, which is then passed on to home buyers.

If the government reduces these GST rates and consolidates them into a single, lower slab, the construction costs will go down. This will directly reduce the price of houses. Builders will save money on materials, and this will benefit buyers. Experts believe this change will be a relief for the middle class, who are already struggling with rising inflation and energy prices.

In particular, the middle class, which has been burdened by increasing costs over the last few years, will see significant benefits. With construction costs increasing by nearly 40% in the last five years, this GST reduction could bring some relief to developers and buyers alike. However, there may not be much change for low-cost homes, which are currently taxed at just 1%.

On the other hand, the new tax changes might affect luxury homes. If expensive fittings and materials are taxed at 40%, builders might increase prices or cut profits. Overall, the GST reform is expected to boost the housing sector and make owning a home more affordable, especially for middle-class families.

This is great news for those looking to invest in their dream home.

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