There have been rising issues regarding the slowdown of the real estate sector and low off-take of under-construction houses which needs to be addressed to boost the residential segment of the real estate sector, following recommendations were made by the GST Council in its 33rd meeting held today:
Effective date: The new rate shall become applicable from 1st of April, 2019.
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).
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.
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.
The new tax rate in principle was approved by the Council taking into consideration the following advantages:-
GST Council decided that the issue of tax rate on lottery needs further discussion in the GoM constituted in this regard.
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