In a big relief for home buyers, Union Finance Minister Arun Jaitley in the 33rd GST Council meeting on Sunday announced reduction in Goods and Services Tax (GST) for 'affordable' housing to 1 percent, from the previous 8 percent.

The GST Council announced that now the residential property priced at Rs 45 lakh or below will fall under 'affordable' category and will be taxed at 1 percent.

The new rates will come into effect from April 1, 2019, informed GST Council after the meeting.