BONANZA FOR REAL ESTATE IN THE GST COUNCIL 33rd MEETING
GST council met today for discussion on real estate related issues and took following decisions:
- GST on other than affordable housing flats would be 5%
- GST on affordable housing will be 1%
- Definition of Affordable housing is as under:
- In terms of cost – any house up to 45 lacs
- In terms of size – Metros – Carpet area upto 60 sq mtr and other places 90 sq mtr
Both conditions will have to be met – house having carpet area of 50 sq mtr valued at 50 lacs will be taxable at 5% and not 1%
- Builders for above types of residential projects will not be eligible to claim input credit
- Transferable Development rights(TDR) / Joint Development Agreements (JDA) / Long term lease premium and FSI transfers shall be exempted only in case it pertains to a taxable residential project, in other words TDRs for commercial projects will be taxable @ 18%
- Above changes will be effective from 1.04.2019 onwards after notifications are issued.