Counsil Meeting

Highlights of 33rd GST Council meeting held on 24.2.2019

Real estate sector, following recommendations were made

1. GST rate:

GST shall be levied at effective GST rate of 5% without ITC on residential properties outside affordable segment;

GST shall be levied at effective GST of 1% without ITC on affordable housing properties.

2. New rate shall become applicable from April 01, 2019.

3.Definition of affordable housing shall be:- 
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).

4. GST 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.

5. Details of the scheme shall be worked out by an officers committee and shall be approved by the GST Council in a meeting to be called specifically for this purpose.

6. Advantages of the recommendations made by the council will help the sector to overcome current difficulties faced by the sector.

7. GST Council decided that the issue of tax rate on lottery needs further discussion in the GoM constituted in this regard.

The decisions of the GST Council have been presented in this note in simple language for easy understanding.  The same would be given effect to through Gazette notifications/ circulars which alone shall have force of law.

thank you for all and congratulations