Reduced GST Rates for Real Estate – GST Council Decision

In the 33rd GST Council Meeting, the Council approved the following tax rates on residential housing properties.
1. GST Rate
i. 5% without ITC on Non-Affordable residential housing properties;
ii. 1% without ITC on Affordable residential housing properties.
2. Effective Date
The new rates shall become applicable from 1 of April, 2019.
3. Definition of affordable housing
i. In non-metropolitan cities/towns: A residential house/flat of carpet area of upto 90 sqm  having value upto Rs. 45 lacs
ii. In metropolitan cities/towns: A residential house/flat of carpet area of upto 60 sqm having value upto Rs. 45 lacs
Metropolitan Cities are:
Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR).
4. GST exemption on TDR/ JDA, long term lease (premium), FSI
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.
5. Note
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.
We shall further update this post once the rates and exemptions are notified. 

GST Law India is a blog on GST and allied commercial laws managed by members of the law firm ALA Legal.

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