To give boost to the real estate sector as was being envisaged earlier, following recommendations were made by the GST Council in its 33rd meeting held on 24th February, 2019:
- With effect from 1st April, 2019, GST @5% on residential properties outside affordable segment; and GST @ 1% on affordable housing properties, without benefit of any input tax credit.
- A residential house/flat of carpet area of upto 90 sqm in non-metropolitan cities/towns and 60 sqm in metropolitan cities having value uptoRs. 45 lacs (both for metropolitan and non-metropolitan cities), shall be considered as ‘affordable’.
- Further, 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.