Real Estate GST on real estate: A slightly higher rate with input tax credit could be a better option Updated : March 27, 2019 12:31 PM IST The real estate sector has been grappling with a slowdown triggered by various issues, including the GST. The GST rate reduction on under-construction properties is expected to uplift the sentiments of home buyers. The move may hit profit margins of developers due to withdrawal of ITC and non-reduction of GST rate on cement. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.