Goods and Services Tax is chargeable on newly constructed homes. However, the federal government has implemented a GST rebate program to stimulate the new home construction industry, an important sector of our economy. In almost all builders' agreements, the GST has been included in the purchase price of the home because builders realize that people prefer to be quoted prices that include GST. In consideration of the purchase price including GST, you are required to assign your right to the GST rebate over to the builder on closing. If for some reason you do not qualify for the GST rebate, you are required to reimburse the builder for this amount.