February24,2019

India announced a cut in tax on residential buildings under construction to boost the economy and to relieve the burden of house buyers before the general election in May.

The GST (the goods and services tax) Council, composed of state and federal finance ministers, announced on Feb. 24 that the tax on new building projects would be cut down from 12 percent to 5 percent. Besides, the tax on affordable housing projects would be cut down from 8 percent to 1 percent. 

As Prime Minister Narendra Modi is bound to face a general election in May, the ruling party of India has been trying to boost the economy. Last month, a change in sales tax was announced, which could exempt around 2 million small companies from paying tax. 

The new tax rates will be effective from April 1st.