Highlights of 33rd GST Council Meeting dated 24th Feb 2019

Looking for the updates of the 33rd GST Council Meeting? Here are the most important ones. 

• GST rate on residential and affordable housing properties:

1. GST shall be levied at an effective GST rate of 5% without ITC on residential properties outside the affordable segment;
2.  GST shall be levied at an effective GST of 1% without ITC on affordable housing properties.

•  Effective date:

  The new rate shall become applicable from 1st of April, 2019.

• Definition of affordable housing:

A residential house/flat of carpet area of up to 90 sqm in non-metropolitan cities/towns and 60 sqm in metropolitan cities having the value up to Rs. 45 lacs (both for metropolitan and non-metropolitan cities). Metropolitan Cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (the 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. Details of the scheme shall be worked out by an officers committee and shall be approved by the GST Council in a meeting to be called specifically for this purpose.

Hope this article was helpful. Refer to the topics discussed in the 34th GST council meeting. 

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