Sorry, you cannot vote on the same answer more than once.
Since the inception of GST in 2017, we have seen many amendments in the bill. The introduction of Goods and Services Tax was with the aim to offer a uniform tax payment regime to the consumers. The initial impact of GST was at a higher side in the real estate industry however, over the period of time, this has significantly changed. At the moment, the interest rates are lower and availing loans at a lower interest rate has become easier. In this answer, I will talk about the impact of GST on home loan and home loan GST rates as well.
What was the earlier norm?
We need to understand first that there were many taxes which were levied before the commencement of GST. The consumer had to pay state taxes, service tax, VAT, central excise, etc. especially on home loan, the service tax was levied at the rate of 15% and other taxes were applicable as well.
Home loan GST rate
Now that we know what was the earlier arrangement around home loan and taxes, let us look at GST on home loan. You should know that GST is applicable on home loan processing fee.
Banks usually levy a processing fee of 0.25% to 1% of the loan amount. On this processing fee, the GST would be applicable at the rate of 18%.
Let us understand this with an example:
Assuming you get a home loan of Rs. 30 lakhs and the processing fee is 0.75% then here is how the taxes would look like:
Service tax before implementation of GST=ย Processing fee x 15%
Service tax before implementation of GST = 22500 x 15%
Service tax before implementation of GST = Rs. 3375
GST on Processing fee = processing fee x 18%
GST on Processing fee = 22500 x 18%
GST on processing fee = Rs. 4050
I hope this makes the concept of GST on home loan clear.
If you're looking to get a home loan, then check out your eligibility in just a few clicks using NoBroker's Home Loan Calculator:
[widget_homeLoan_checkEligibility_form]
Most Viewed Questions
How to download salary slip?How to Close PF Account Online ?How to Get Refund of Stamp Duty Paid in Maharashtra?How Can Change Nominee In Atal Pension Yojana?How to get salary slip online?How To Calculate Sinking Fund For Housing Society?Need to transfer PF amount and correct the father name in EPFO. How to do it?WE ARE IN PROCESS OF SELLING OUR INDUSTRIAL LAND AND BUILDING OF THE PARTNERSHIP FIRM NAME AND WOULD LIKE TO SAVE CAPITAL GAIN TAX IN A SIZABLE WAY. PLEASE GUIDE US FOR THE SAME.How To Check Gratuity Amount?What is DCRG in pension?
How to Download Income Certificate Online Tamil Nadu?How to calculate home loan EMI?What is MOD Charges for Home Loan?What is part period interest in SBI home loan?How to Avoid Part Period Interest in SBI Home Loan?How to check APF number online?Last 10 years home loan interest rates in IndiaHow to Withdraw PF for House Construction?How to Check EPF Grievance Registration Number?How to pay home loan EMI through credit card?
How to Change Email ID in PAN Card?What is Cooling Period in SBI YONO?How Much Money Can Be Transferred Through YONO SBI?How to Increase Transfer Limit in SBI YONO?How to Check Personal Loan Eligibility in SBI Yono App?How to Add Beneficiary in SBI YONO App?How to Pay SBI Home Loan EMI Online?How to Transfer Money From YONO SBI?How to Pay Loan Amount in YONO SBI?How to Preclose ICICI Personal Loan?
How to Download SBI Bank Statement?How to Check Which Number is Linked with Bank Account?How to activate auto sweep facility in SBI online?How to withdraw pension contribution in EPF?How to Deactivate Autopay in HDFC Netbanking?How to Change Mobile Number in BOB Bank Account Online?Where is CIF Number in Central Bank Passbook?How to Know Customer ID of IPPB ?What are the Principles of Lending Followed by Banks?How to Renew ATM Card?
Recently Published Questions
How to Close PF Account Online ?What is broken period interest?How to Find Cheque Number?What is Suspicious Transaction Report?The Society is Charging me Corpus Fund after 7 Years of my Agreement with the Builder and all Requisit Payments made to the Builder.Why Is there a Need for me to Show my PAN for a Loan Below 50 Thousand?Does a builder give both rent and corpus fund while redevelopment? What is corpus fund can you please explain in detail ? What is the loss of building member if they dont take corpus find? Its important as my building members are not aware about it and I dont have much knowledge please explain.What is HDFC Home Loan Interest Rate Female?What is LIC Plot Loan Interest Rate?What is Shubham Housing Finance Rate of Interest?
What is OCR in home loan?What is the EMI for 55 lakhs home loan?What is the Minimum Home Loan Amount?What is the Home Loan Rate of Interest in Post Office?Which is Best HDFC vs PNB Home Loan?What are the Documents Required for Home Loan BOI?Is Home Loan Simple or Compound Interest?What is Piramal Housing Finance Review?How much home loan can I get on 20000 salary?What is Bank of Baroda Home Loan Processing Fee?
How to Apply Personal Loan in KVB?What are the Documents Required for Personal Loan in IDBI Bank?How to Calculate EMI for Personal Loan?What is YONO SBI customer care number?How to Apply Personal Loan in Central Bank of India?What is Bank of Baroda Personal Loan Processing Fee?How to Reduce Personal Loan Tenure?What Documents are Required for Xpress Credit Loan?How to Get a Loan of 50000?What is the Difference between Loan and Advance?
How to contact PayZapp customer care?How to Download HDFC Bank Statement?How to check NEFT status?What is the minimum amount of RTGS?Why do Banks Freeze Accounts?How to transfer money from HDFC Payzapp to bank account?What are the Types of Bank Scams?How to Prevent Online Banking Frauds?How to Report Bank Frauds India?What is Loan Disbursement?
Authors Of The Question
Bindu Shankar
0 Total Answers
How much GST on home loan is applicable?
Ashok
๐375Views
August 11, 2021
2021-08-11T12:05:16+00:00 2021-08-11T13:57:04+00:00Comment
1Answers
Taxes
Share