[Last Updated 19th March 2019]
GST Council has given go-ahead for new rules for Real estate sector in its meeting held on 19.03.2019 which was much awaited by the Real Estate sector with some condition attached to it. Council in its last meeting on 24 Feb 2019, slashed tax rates for under construction flats in the affordable category to 1% and GST on other flat reduced to 5%, effective from 1 st April 2019.
1. GST rates for new Real estates project to be mandatory from April 1, 2019.
2. Under Construction projects as on 31st March, 2019 will have an option to choose an old rate with ITC or new rates without ITC.
3. Upto 15% of commercial Spaces to be treated As Residential Properties for GST purpose.
4. Time Limit for Transition to new rates to be discussed with the States.
5. Reversal of Input tax Credit ( ITC) to be proportionate to the Area Space.
6. 80% of procurement of Material should be from Registered Dealers.
7. Affordable housing to be taxed at 1% without ITC.
Link: Download detailed Official Press Release