The GST rate on affordable housing is 1% (without Input Tax Credit) applicable to under-construction properties that meet the government's definition of affordable housing. This concessional rate was introduced in April 2019 to make home ownership more accessible for first-time buyers and lower-income segments.
Homes under PMAY (Pradhan Mantri Awas Yojana) that also meet the affordable housing criteria are eligible for both the 1% GST and the interest subsidy under the Credit Linked Subsidy Scheme (CLSS) making them doubly beneficial.
The 1% GST on affordable housing is one of the most significant concessions in Indian real estate taxation. Buyers of smaller homes priced up to ₹45 lakh benefit substantially from this rate compared to premium housing buyers.

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