Loan Against Property

 

Godrej Capital's Loan Against Property (LAP) is designed to support business growth with high loan eligibility, flexible EMIs, longer tenures, and a wide range of acceptable collaterals. This loan provides substantial funding based on property value, making it ideal for significant business investments and expansions.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Udyog Loan Against Property

 

Are you an MSME owner looking to scale your business operations? Take your business to new heights with Godrej Capital Udyog Loan Against Property. Our loan solutions enable business owners to get higher loan eligibility by allowing multiple sources of income to be considered.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Commercial Property Loan

 

Take your business to the next level with a Commercial Property Loan that finances construction, extension or improvement to make your business goals become reality. With plans designed for your life, you can rest assured that your business empire is in safe hands.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Balance Transfer

 

Transfer your existing loans to Godrej Capital and experience the benefits of lower interest rates, flexible repayment terms, and significant EMI savings. Enjoy higher eligibility, along with a top up loan, to take care of your extra needs.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Home Loan

 

Seeking a Home Loan to buy a ready-to-move-in property, an under-construction house, or renovate your current residence? Our Home Loan, featuring low interest rates and flexible EMI plans, is specifically designed to help you accomplish buying your dream home.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Plot Loan

 

Found the perfect spot to build your future? Our Plot Loans can help make it yours. Our loans offer you the financial help, low interest rates and flexible payment options you need to construct the home of your dreams.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Professional Loan for Doctors

 

Whether you need working capital to start your own clinic or upgrade your current practice with new facilities and hire skilled staff, our Professional Loans for doctors are here to help you. Apply today for a collateral free loan today!

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Professional Loan for Doctors

 

Whether you need working capital to start your own clinic or upgrade your current practice with new facilities and hire skilled staff, our Professional Loans for doctors are here to help you. Apply today for a collateral free loan today!

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Professional Loan for CAs

 

Godrej Capital's Professional Loan helps CAs in expanding practice, hiring new staff, enhancing equipment, and upgrading services for business growth. Get a loan without collateral and take your career to new heights.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Business Loan for MSMEs

 

For MSMEs aiming for growth, Godrej Capital Business Loans for small businesses offer the funds needed to expand their business and manage cash flow. Apply for MSME loan without collateral today!

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Business Loan for Women

 

Are you a woman entrepreneur? Godrej Capital's Business Loans for women-owned MSMEs help them fuel growth and meet business needs without any collateral. Apply for a small business loan today!

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Business Loan

 

Empower your business with Godrej Capital's Business Loan, offering flexible financing solutions to help businesses take the next step for growth. Apply for online Business Loan without collateral today!

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

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Understanding GST for Home Buyers in India (2024): Impact & Implications



Purchasing a home marks a significant milestone in many people's lives. However, the journey to homeownership is accompanied by various financial considerations, one of the key aspects being the Goods and Services Tax (GST). The impact of GST on flat purchases has brought about notable changes for home buyers, altering the overall cost of owning a home and influencing decision-making processes.

Understanding the role of GST in real estate is indispensable for both first-time buyers and seasoned investors. In this blog post, we will explore the nuances of GST concerning new flat purchases and its implications for home buyers.

 

GST on Property in India

Introduced in 2017, GST is a comprehensive tax imposed on every value addition. In the real estate sector, GST directly affects the cost and pricing of properties, including flats. In India, GST on property is levied on the sale of under-construction properties or those still in the development phase. This tax does not apply to ready-to-move-in flats or resale properties, as GST has already been paid during the construction phase of completed projects.

The current GST rate for under-construction properties, including affordable housing, is comparatively lower than the previous tax regime, which encompassed various taxes such as VAT and Service Tax. This not only simplifies the process and enhances transparency but also lessens the tax burden on home buyers.

 

Also Read: Decoding Commonly Used Home Loan Terminologies

 

GST Rates: 2024  

The GST rate on flat purchase varies depending on the type of property being acquired.

 

GST rate on flat purchase - under construction (affordable housing): 1% without Input Tax Credit (ITC)

 

GST rate on flat purchase - under construction (non-affordable housing): 5% without Input Tax Credit (ITC)

 

GST on ready-to-move flats: Nil

 

Impact of GST on Home Buyers

The imposition of GST on flat purchases has several implications for home buyers:

 

Price Transparency: GST has rationalized the tax structure, offering greater transparency. Buyers now have a clearer understanding of the taxes they are paying, as multiple indirect taxes formerly applicable have been amalgamated under GST.

 

Increased Affordability in Some Segments: The reduced GST rate of 1% without ITC for affordable housing has made such properties more accessible to buyers. This is particularly advantageous for middle-income groups and first-time home buyers.

 

Effects on Non-Affordable Housing: While the 5% GST rate for non-affordable housing is higher than that for affordable housing, many still consider it reasonable. However, the elimination of ITC implies that developers cannot claim tax credits on construction costs, potentially leading to higher overall project expenses and subsequently, increased prices for buyers.

 

Also Read: Understanding Pradhan Mantri Awas Yojana 2024 – Affordable Housing Scheme

 

Clarity in Taxation: The standardized GST rate nationwide has brought about more clarity in tax terms compared to the previous system where VAT and service tax rates varied from state to state.

 

Impact on Under-Construction Properties: GST is only applicable to under-construction properties. Hence, buyers opting for ready-to-move-in properties can bypass paying GST, resulting in significant savings.

 

Comprehending GST Implications on Flat Maintenance Fees

Apart from the initial purchase, buyers might also encounter GST on maintenance charges for their flats. 

If the total maintenance charges exceed INR 7,500 per member per month and the society’s annual turnover is INR 20 lakhs or more, GST at a rate of 18% applies. Maintenance charges can encompass various components such as property tax, water bills, and electricity charges for common areas. Societies liable to pay GST can claim ITC on GST paid on goods and services for maintenance, reducing the overall maintenance costs for members.

 

Also Read: A 360-degree View of Home Loan Management at Different Stages

 

I want to cancel my flat purchase. Who will bear the GST burden?
As per GST laws, if a buyer cancels a flat booking before possession, the GST paid on the advance amount can be refunded. Since GST is paid on the sale transaction, which remains incomplete until property possession, developers are responsible for refunding the GST amount to buyers. The builders can then claim a refund from the government. 

However, builders may deduct cancellation charges before refunding the booking amount and GST, the specifics of which are determined by the builder's policy and agreement terms. 

Buyers should ensure they have all the necessary documentation for processing the GST refund.

 

Home Ownership Made Easy with Godrej Capital
Understanding the complexities of GST regarding flat purchases is indispensable for any home buyer. From ascertaining applicable GST rates to comprehending its impact on total costs and maintenance charges, GST plays a pivotal role in financial planning. Staying informed about these details empowers buyers to make educated decisions, ensuring their dream home does not become a financial burden.

If you are considering buying a home and require financial assistance, Godrej Capital Home Loans offer attractive interest rates and flexible repayment options. Our user-friendly home loan EMI calculator aids in determining potential EMIs and effectively planning your finances. Visit our website to apply online for a hassle-free borrowing experience.

 

Disclaimer: 

The contents of this article are for information purposes only & not a financial advisory. For more details, please refer to the product or service document and/ or connect with our customer representative prior to making any financial decision. The information is subject to update, completion, revision, and amendment and may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its Affiliates to any requirements. Godrej Capital or its Affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

 

Financing through Godrej Finance/Godrej Housing Finance Limited. Product Terms & Conditions apply, for details visit https://www.godrejcapital.com