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.
In its 33rd meeting the GST Council has accorded big relief to Real Estate Sector. GST rate on affordable housing has been reduced to 1% from 8% & for others from 12% to 5% for both without ITC.This will give boost to housing for all & fulfill aspirations of Neo/Middle classes.
— Arun Jaitley (@arunjaitley) February 24, 2019
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.