Nifty Realty gains 2% as GST Council approves new tax rates

Shares of Indiabulls Real Estate, Godrej Properties, Brigade Enterprise, DLF, and Prestige Estate Projects were leading the index’s gain.

Mar 20, 2019 10:03 IST India Infoline News Service

The Nifty Realty index gained 2% on Wednesday after the GST Council in its 34th meeting held Tuesday granted approval to a transition plan for the implementation of new tax structure for housing units.

Shares of Indiabulls Real Estate, Godrej Properties, Brigade Enterprise, DLF, and Prestige Estates Projects were leading the index’s gain.

The GST council has decided that builders can pick between paying 12% for non-affordable houses with ITC benefits or 5% without the tax rebates for under-construction houses. Likewise, for affordable housing projects, builders can choose between 8% with tax rebates or 1% without it, the ministry said in a press note released on Tuesday evening. The new rates, without ITC benefits, will apply for all projects that begin construction only after April 01, 2019.

Shares of Indiabulls Real Estate and Godrej Properties, which climbed 5% and 4% each, were leading the index’s gain. Shares of Brigade rose 3% and those of DLF, Prestige Estate Projects gained 2% each.

However, shares of Sunteck Realty dropped 1%.

Meanwhile, equity benchmark indices were trading in the green on Wednesday with the Sensex rising 83 points at 38,446 levels. The Nifty also rose 17 points at 11,549 levels.

Related Story