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The GST Council today announced a cut in the goods and services tax charged on sales of residential properties under construction.
The Goods and Services Tax Council, comprising state and federal finance ministers, announced that the new rate will be 5 percent, down from the current 12 percent, on all housing projects which were not in the affordable housing category, the reports said.
The council also decided to lower the tax rate on affordable housing projects to 1 percent from 8 percent.
-The new tax rates will come into effect from 1 april 2019
Addressing the media, Union Finance Minister Arun Jaitley said, “We have adopted twin definition of affordable housing. One, on the basis of carpet area and another, on the basis of cost. In metro cities, a 60 sq metre carpet area and Rs 45 lakh apartment will fall under affordable housing. In non-metro areas, it will be 90 sq metre carpet area and Rs 45 lakh apartment. This will come into effect from April 1.”
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