Here’s the good news for home buyers. The Goods and Services Tax (GST) Council met for its 33rd meeting and slashed GST rate on under-construction residential properties and the affordable housing projects. The revised rates will be applicable from April 1, 2019.
Here are the revised GST rates:
In the case of non-affordable houses, the GST rate for under-construction flats and houses has been brought to 5% without Input Tax Credit (ITC), down from the present 12%.
In the case of affordable houses, the GST rate has been reduced to 1% without ITC from 8%.
The decision was based on recommendations of a Ministerial Panel headed by Gujarat Deputy Chief Minister Nitin Patel.
Homes up to Rs 45 lakh and with a carpet area of up to 60 sq metres in metros and 90 sq metres in non-metro cities will be counted in the affordable segment, according to the new twin definition cleared by the council, which is expected to give a big boost to lower-income housing. The earlier limit was a uniform carpet area of up to 60 sq meters for a house in an approved affordable housing scheme. There will be no input tax credit for GST paid on materials such as cement and steel for the sector at these lower GST rates.