GST Council 33rd Meeting decisions-reduction in tax on sales of residential properties under construction.to 5 %. Definition of affordable housing altered
The Union Minister of Finance & Corporate Affairs, Arun Jaitely
chaired the 33rd GST Council Meeting which was held in New Delhi.
The Meeting is being attended by the Finance Ministers of different States and the Union Territories.
As per media reports the centre today announced a cut in the goods and services tax charged on sales of residential properties under construction.
The Goods and Services Tax Council announced that the new rate will be 5 per cent as reduced from the current 12 per cent, on all housing projects which were not in the affordable housing category.
The council has also decided to bring down the tax rate on affordable housing projects to 1 per cent from 8 per cent.
Also. the GST council amended the definition of affordable housing by providing that any house built on an area of 60 square metres or less in the metro cities of India will now be categorised as affordable housing. For non-metro cities, the benchmark area would be 90 square metres or less