Outcome of the 33rd GST Council Meeting held on 24th February, 2019
The GST Council held its 33rd meeting in New Delhi on 24th February, 2019. In the meeting, GST council has taken the following decisions to boost the residential segment of the real estate sector,
- GST shall be levied at effective GST rate of 5% without ITC on residential properties outside affordable segment
- GST shall be levied at effective GST of 1% without ITC on affordable housing properties*.
- The new rate shall become applicable from 1st day of April, 2019.
- Intermediate tax on development right, such as TDR, JDA, lease (premium), FSI shall be exempted only for such residential property on which GST is payable.
*Affordable housing properties- A residential house/flat of carpet area of upto 90 sqm in non-metropolitan cities/towns and 60 sqm in metropolitan cities having value upto Rs. 45 lacs (both for metropolitan and non-metropolitan cities).Metropolitan Cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR).
For more information please refer the attached Press Release.
Source: Press Information Bureau