GST on houses under Pradhan Mantri Awas Yojna reduced to 8%

The government has cut GST rate from 12% to 8% on houses purchased using the credit-linked subsidy scheme (CLSS) under Pradhan Mantri Awas Yojna. However, people who are not eligible for CLSS will continue to pay GST at 12%. The tax benefit will also be extended to an affordable housing project, which has been given infrastructure status.