GST will not be applicable for MHADA homes

Maharashtra Housing and Area Development Authority (MHADA) officials have said that the advertisement for its already delayed lottery for nearly 800 homes will be out in the next 10 days. They also clarified that there would not be any hike in prices of flats due to Goods and Services Tax as GST will not be applicable to MHADA homes.

MHADA had constituted a panel to decide on whether the 12 per cent GST applicable on sale of homes will be applicable on their homes too. Since July 1, after GST came into force, MHADA was concerned that their homes will become expensive.

Already in certain pockets, MHADA home prices have crossed the Rs 1 crore mark, and they have received flak for it. Hence, authorities wanted to be sure about whether GST will be applicable or not.

Tushar Matkar, Deputy Chief Officer (Marketing), Mumbai Board, MHADA confirmed that their CA and the panel has given them a clearance that GST will not be applicable on MHADA flats. "There are certain institutions that weren't taxed earlier and MHADA is one amongst them," he said.