The lowering GST is still at its proposal stage as Federal indirect tax body, the Goods and Services Tax (GST) Council will have face-to-face meeting on this Sunday to discuss and tkae a final call on this matter. The ministerial panel is in favour of lowering the GST rate on under-construction properties to 5% without credit for taxes paid on raw materials. The panel will also discuss in lowering the rate on affordable housing from 8% to 3%.

It should be noted that currently 12% effective rate of GST is imposed on under-construction properties after allowing for the cost of land, which does not come under the purview of GST. Properties with construction completed attracts stamp duty, not GST.