33rd GST Council meeting was held on 24th February, 2019. The meeting focused on Real estate sector. Following important recommendations were made in the meeting to boost the sector:
GST rate(effective from 1st of April, 2019)
GST shall be levied at effective GST rate of 5% on residential properties outside affordable segment and at 1% on affordable housing properties,
without ITC.
Affordable housing means, “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).”
Exemption on TDR/ JDA, long term lease (premium), FSI
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.
Click here for the press release.
