GST Council decides to lower tax rates in real estate
New Delhi, February 24, 2019 :
In its 33rd meeting the GST Council has accorded big relief to Real Estate Sector. GST rate on affordable housing has been reduced to 1% from 8% & for others from 12% to 5% for both without ITC.This will give boost to housing for all & fulfill aspirations of Neo/Middle classes.
The GST Council has cleared the proposal for lowering the GST rates for real estate sector which includes housing of different categories.
The council meeting held on Feb 24 decided that GST payable for under construction properties will be 5 percent for normal housing.
Finance Minister Arun Jaitley briefing the decisions of the council meeting today, said that tax rate for the affordable housing category would be1 percent .However, in both cases, input tax credit (ITC) cannot be claimed. The rate cuts will be effective from April 1.
Properties costing up to Rs 45 lakh will be considered affordable. Similarly, properties with a carpet area up to 60 sq meter for metros and 90 sq meter for non-metros will be considered affordable.