BONANZA FOR REAL ESTATE IN THE GST COUNCIL 33rd MEETING

BONANZA FOR REAL ESTATE IN THE GST COUNCIL 33rd MEETING

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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:

 

  1. GST on other than affordable housing flats would be 5%

 

  1. GST on affordable housing will be 1% 

 

  1. Definition of Affordable housing is as under:

 

  1. In terms of cost – any house up to 45 lacs

 

  1. 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%

 

  1. Builders for above types of residential projects will not be eligible to claim input credit

 

  1. 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%

 

  1. Above changes will be effective from 1.04.2019 onwards after notifications are issued.

 

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