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07 October, 2017
Property purchase during festival season is considered to be very auspicious as it brings with it wealth, prosperity and good luck for the buyer. Many developers come up with various attractive deals for the real estate sold during these days. There can be a reduction in the rate per square feet or discount in the price or flexible payment schedules. Not just the builders, but even the lenders offer freebies like lower interest rates or waiver on processing fees or other charges on the home loans availed during this period.
Instead of the white goods and gold coins being offered as a free gift, this Navratri there was something more attractive which caught the attention of many potential home buyers. As festive season offer in real estate, GST festive offer is the latest buzzword that is attracting the buyers. Most of the builders in Delhi NCR, in order to lure customers, are absorbing the 12% GST levied on under-construction projects. For example, Supertech Limited is giving a GST waiver on every new property purchased across its 50 locations. It also offers a rental plus EMI free offer till the possession of the property on some of its properties in Noida.
Sikka Group is giving a GST waiver plus a well-furnished apartment on its selected Projects in Noida Expressway plus assured rental scheme for its property Sikka Kapital Grand, Noida. The Gaurs Group besides giving standard benefits like free parking, free maintenance for the first year, free club membership, also offers 100% waiver for its under-construction properties.
The GST waiver for under-construction properties is becoming the talk of the town and is being used as a marketing strategy to lure buyers. Buyers while taking a decision need to be careful that these claims are not being made for ready projects. The Government from July 1st onwards has levied a GST of 12% on the sale of under-construction projects. The GST will include the service tax and VAT Tax and not the stamp duty levied by the states.
Offering GST waiver as a festival offer is a smart marketing tactic. But it would become more attractive if in case the developer also agrees to pass on the GST input credits to buyers.
The other popular festival freebies during this festive season are zero stamp duty charges, first free ownership transfer, and 5-10% discount on the price of the flat and white goods.
Hence, this festival season has started on a very positive note. While the landmark reforms like GST and RERA have tried to bring reliability and transparency in the system and are very buyer friendly, the builders too have been very supportive.
The new tax regime GST is not applicable on ready-to-move flats having occupation certificates (OCs). This festive season there will be a vast range of ready-to-move-in projects to choose from.
The interest rates on home loans are the lowest in the last few years. The banks have also been offering other attractive freebies like processing fee waiver. Overall, this has put the home buyers in a win-win situation as they get a variety of projects to choose from plus profitable financing options too.