33rd Council meeting recommendations

GST Rates for Real Estate sector to be effective from 1st April, 2019

• Effective GST Rate of 5% without ITC on residential properties outside affordable segment
• Effective GST of 1% without ITC on affordable housing

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 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, Gurugram, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR)

GST exemption on Transfer Development rights/Joint development rights, long term lease (premium), and floor space Index.

• 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.