GST council approves lowering the tax rate on under construction properties to 5%

GST council approves lowering the tax rate on under construction properties to 5% As expected, the GST Council meeting which was held today

CA Deepak Gupta

Feb 24, 2019

Last update on Feb 24, 2019

GST council approves lowering the tax rate on under construction properties to 5%

As expected, the GST Council meeting which was held today has approved the agenda for lowering Goods & Service tax rate on under constructed properties to 5 percent from 12 percent.

In addition to that Goods & Service tax rate for properties that are priced below Rs. Forty Five Lakh [affordable housing scheme] has been reduced to 1 Percent from 8 Percent.

Also definition of affordable housing has been changed to 90 sq mtr for non-metro cities & 60 for metro cities with a capping of Rs 45 Lakh for both

Metropolitan Cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR).

GST council approves lowering the tax rate on under construction properties to 5%

Effective date:The new rate shall become applicable from 1^stof April, 2019.

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