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applicability of reduced rate of gst on flat
5%gst on flat purchase shall be effective from March or not... Pls guide us..
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The GST Council has deferred a decision on tax rates on real estate till February 24, 2019.
Briefing reporters after a meeting of the GST Council on February 20, 2019, finance minister Arun Jaitley said that with regard to the Goods and Services Tax (GST) rate on under-construction housing properties, since certain states wanted physical meeting for this agenda, hence, the Council would meet again on February 24 to take a decision.
Still decison of council is not came.pls wait for it
Notification awaited........
Just announced........
Residential property priced at Rs 45 lakh or below will be considered ‘affordable’ and taxed at 1 percent, from 8 percent earlier. Under-construction properties priced over Rs 45 lakh will invite 5 percent GST, versus the previous rate of 12 percent. Property will be considered affordable if it is 90 sq. metres in metro cities and 60 sq. metres in non-metro cities, Bihar Finance Minister Sushil
5% GST Rate For Under-Construction Properties
The Goods and Services Tax Council has approved lowering the tax rate on under-construction properties to 5 percent, from 12 percent earlier. Affordable housing projects will attract 1 percent tax. The definition of what constitutes affordable housing has been changed. However, developers won’t be allowed to claim input tax credit.
Ministerial Panel's Recommendations
For Real Estate A ministerial panel had proposed bringing down GST on under-construction properties to 5 percent from 12 percent.
The group of ministers, headed by Gujarat Deputy Chief Minister Nitin Patel, had also suggested lowering the tax rates on affordable homes. But developers won’t be allowed to claim input tax credit.
The panel also has Maharashtra Finance Minister Sudhir Mungantiwar and Karnataka Finance Minister Krishna Byre Gowda as its members, according to a statement by Ministry of Finance. Other members include the finance ministers of Kerala, Punjab and Uttar Pradesh—TM Thomas Isaac, Manpreet Singh Badal and Rajesh Agarwal, respectively—and Goa Panchayat Minister Mauvin Godinho.
Finance Minister Arun Jaitley said that the GST council agreed to lower GST for affordable housing to 1 percent.
This move will give a “boom” to the real estate sector, and make housing affordable for middle-class, neo-middle class and aspirational class.
‘Affordable housing’ in Bengaluru, Chennai, Delhi NCR, Hyderabad,Kolkata, Mumbai MMR region will have a carpet area up to 60 sq metres and will be priced up to Rs 45 lakh.
In non-metro cities, criteria for affordable housing will be defined based on carpet area of up to 90 sq. metres and cost up to Rs 45 lakhs, he added. “We expanded the definition of affordable housing so that aspiring people can buy better houses.”
The move is set to be implemented from April 1, 2019.
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