Breaking News

You are here » Indian-Commodity  :  Economy  :  GST Council cuts tax rate on under-construction flats to 5%

25-Feb2019

GST Council cuts tax rate on under-construction flats to 5%

The Goods and Services Tax (GST) Council, headed by Union Finance Minister Arun Jaitely, in its 34th meeting has cut tax rate on under-construction housing properties to 5 per cent without input tax credit (ITC), from the existing 12 per cent. This step has been came a big relief to home buyers. Currently, the GST is levied at 12 per cent on payments made for under-construction properties or ready-to-move-in flats where completion certificate has not been issued at the time of sale.

The Council also slashed GST rate on affordable housing to 1 per cent from the current 8 per cent and expanded the scope of affordable housing to those costing up to Rs 45 lakh and measuring 60 sq metre in metros and 90 sq metre in non-metro cities. However, builders will not be able to claim ITC under the new GST rates. Meanwhile, GST is not levied on real estate properties for which completion certificate has been issued at the time of sale. The new tax rates will come into effect from April 01, 2019.

Talking on the GST reduction, Finance Minister Arun Jaitley has said this decision will certainly give boost to construction sector. Besides, the GST Council has deferred its decision on lotteries. Jaitley said that the Group of Ministers (GoM) will meet again to discuss the proposal. Currently, state run lotteries attract 12 per cent GST, while state-authorised ones attract 28 per cent.



Related News

View all news

CPI inflation hits 6-month high of 2.92% in April

India's retail inflation based on Consumer Price Index (CPI) continued northward journey for third straight month and inched up to a 6-month high of 2.92% in April 2019 due to a spike in food prices, including......

Indian economy to grow at 7% range in current fiscal: Subramanian

Chief Economic Advisor (CEA) Krishnamurthy V. Subramanian has said  that the Indian economy would grow at 7% range in the current financial year (FY20) powered by the effects of the strong structural......

Banks take 57% haircut in 94 cases resolved in FY19: ASSOCHAM-CRISIL study

A joint study carried out by the industry body Associated Chambers of Commerce & Industry of India (ASSOCHAM) and rating agency CRISIL stated that banks have taken a huge 57% haircut in the 94......

Top News

View all news

SRF, NIIT Technologies and United Bank of India to see some action today

SRF has entered into a definitive agreement to sell its Engineering Plastics Business to DSM, the Life Sciences and Materials Sciences Company in an all-cash transaction, amounting to Rs 320 crore. The......

NIIT Technologies concludes sale of 88.99% stake in ESRI India Technologies

NIIT Technologies has concluded the sale of 88.99% equity shares in ESRI India Technologies, India to Environment Systems Research Institute Inc., USA. Consequent to above sale, ESRI India Technologies,......

United Bank of India to raise Rs 1,500 crore by various means

United Bank of India has received approval to raise equity capital not exceeding Rs 1,500 crore in one or more tranches during the financial year by way of Qualified Institutions Placement, Public Issue,......