The Goods and Services Tax (GST) Council will consider a proposal to reduce GST on several construction materials from 28% to 18%. The final tax rates will be declared after a meeting scheduled on 19^th July. The idea is to create more jobs and boost the economy ahead of the 2019 general elections.

For home buyers, this could prove to be a step in the right direction as relaxed taxation rules would enable them to access the interest subsidy scheme. It is likely that as costs of construction material would reduce, construction itself will gain momentum.

Niranjan Hiranandani, President of the National Real Estate Development Council, told Mint, "It will be helpful in the long run. Lowering GST will help in construction of more homes and increasing inventory."

Increased inventory would mean that the costs of houses will come down. Home buyers will additionally benefit from reduced tax costs.

Source