25/02/2019
*GST Update*
GST council met today for discussion on real estate related issues and took following decisions:
1. GST on other than affordable housing flats would be 5%
2. GST on affordable housing will be 1%
3. Definition of Affordable housing is as under:
a. In terms of cost - any house up to 45 lacs
b. In terms of size - Metros - Carpet area upto 60 sq mtr and other places 90 sq mtr
Both conditions will have to be met - house having carpet area of 110 sq mtr valued at 30 lacs will be taxable at 5% and not 1%
4. Builders for above types of residential projects will not be eligible to claim input credit
5. Transferable Development rights(TDR) / Joint Development Agreements (JDA) / Long term lease premium and FSI transfers shall be exempted only in case it pertains to a taxable residential project, in other words TDRs for commercial projects will be taxable @ 18%
6. Above changes will be effective from 1.04.2019 onwards after notifications are issued