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affordable housing means under GST

Dharmendra Varma (16 Points)

24 February 2019

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185405 Points)
Replied 24 February 2019

For GST, the definition ia going to change now...

Residential property priced at Rs 45 lakh or below will be considered ‘affordable’ and taxed at 1 percent,

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/

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Ch. Sai Sudha Mohan (Income Tax Practitioner) (241 Points)
Replied 25 February 2019

if a unit in an apartment satisfies both the condition can we claim the status of affordable housing only for that unit of the apartment

2 Like

Surjeet Kumar (67 Points)
Replied 25 February 2019

Is the contractor dont getting ITC. on purchasea of raw matrial ei..cement , steel ,bricks etc..

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185405 Points)
Replied 26 February 2019


	if a unit in an apartment satisfies both the condition can we claim the status of affordable housing only for that unit of the apartment?

It should be eligible, but wait for final notification/clarification by CBIC.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185405 Points)
Replied 26 February 2019


	Is the contractor dont getting ITC. on purchasea of raw matrial ei..cement , steel ,bricks etc..

If the contractor supplies to Builder, he will be eligible for ITC; but the final supply to consumer by builder/contractor will not be eligible for ITC.

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akshat vithalani (7 Points)
Replied 02 March 2019

sir,

where the definition has been given? can you please share the same

Prabhat Kumar Thakur (accountant) (71 Points)
Replied 28 March 2019

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185405 Points)
Replied 28 March 2019

The Council Council, on March 19, 2019, expanded the definition of affordable housing for the purpose of availing of GST benefits, to those flats costing up to Rs 45 lakhs and measuring 60 sq metres carpet area in metros (Delhi-NCR, Bengaluru, Chennai, Hyderabad, Mumbai-MMR and Kolkata) and 90 sq metres carpet area in non-metros. “We have adopted twin definition of affordable housing, on the basis of carpet area and cost. We have expanded the definition of affordable housing, so that aspiring people can buy slightly bigger (houses), so 60 sq metres carpet area in metros and 90 sq metres outside the metros, which approximate translates to a two-bedroom house in a metro and a possibly three-bedroom house in non-metros. This will come into effect from April 1, 2019,” Jaitley said.

For GST applicability on affordable housing, currently there is no valuation threshold and the calculation of carpet area varies from project to project.

1 Like

minali arya (ca) (3 Points)
Replied 20 May 2019

WHAT RATE WOULD BE LEVIED AFTER 1/3 ON AFFORDABLE

Nilesh Jagtap (2 Points)
Replied 27 May 2019

Sirji

For affordable house RERA Registration is compulsory or not, if any notification related to RERA registration for affordable house please sent mi on najagtap @ gmail.com

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venkatanarasimharao murala (11 Points)
Replied 28 May 2019

Is there any specified procedure to opt for new gst tax rates for Builders,

Tilak Agarwal (3 Points)
Replied 01 July 2019

Dear Sir, I have the same question regarding the eligibility of affordable housing for a particular unit in the apartment. 1. Has the final notification/ clarification by CBIC been released on the matter? 2. What if the builder has decided to opt for old GST rates with ITC, can we still claim the 8% get rate on the particular unit?