What is the new GST Recommended by Government Panel for under-construction residential properties?

Government panel recommended lowering GST on under-construction residential properties to 5%. The GST rate for under-construction flats earlier was 12%.The Group of Ministers headed by Nithin Patel was formed to analyse tax rates and issues or challenges being faced by the real estate sector under the Goods and Services Tax (GST) regime.The seven member ministerial panel also favoured lowering GST on affordable housing from 8% earlier to 3%.The move will give relief to homebuyers as the tax rate had lowered sharply with no input tax credit. Any cut in GST should reduce the adverse impact on the land abatement rate also.