33rd GST Council Meeting recommendations
GST Rates for Real Estate Sector to be effective from 1st April, 2019
- Effective GST rate of 5% without ITC on residential properties outside affordable segment;
- Effective GST of 1% without ITC on affordable housing properties.
Definition of affordable housing:
- A residential house/flat of carpet area of up to 90 sqm in nonmetropolitan cities/towns and 60 sqm in metropolitan cities having value up to Rs. 45 lakh (both for metropolitan and nonmetropolitan cities).
- Metropolitan Cities are Bangalore, 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.