GST Council approves transition plan of new tax structure for real estate sector
New Delhi [India], Mar 19 (ANI): The Goods and Services Tax (GST) Council on Tuesday approved a transition plan for the implementation of a new tax structure for the real estate sector from April 1.
ANI
Mar 19, 2019 18:07 IST
New Delhi [India], Mar 19 (ANI): The Goods and Services Tax (GST) Council on Tuesday approved a transition plan for the implementation of a new tax structure for the real estate sector from April 1.
The council also decided that under-construction projects will have an option to shift to the new rate.
It also held that 80 per cent procurement of materials should be from a registered dealer. The council also decided that up to 15 per cent of commercial space will be treated as residential property for GST purpose.
On February 24, the GST Council in its 33rd meeting had come up with new rates for housing units.
GST will be levied at an effective rate of 5 per cent without input tax credit on residential properties outside the affordable segment, while GST shall be levied at effective GST of 1 per cent without input tax credit on affordable housing properties.
A residential house or flat with a carpet area of up to 90 square metres in non-metropolitan cities and towns and 60 square metres in metropolitan cities having a value up to Rs 45 lakh (both for metropolitan and non-metropolitan cities) has been categorised as affordable housing.
Metropolitan cities are Bengaluru, Chennai, Delhi NCR (Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon and Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai Metropolitan Region). (ANI)
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