General News: The Goods and Services Tax (GST) on affordable housing properties without input tax credit (ITC) has been reduced to one per cent, while effective GST of 5 per cent shall be applicable without ITC on residential properties outside affordable segment, as was decided by the GST Council at its 33rd meeting here on Sunday.
“The new rate will be effective from April 1, 2019,” said Finance Minister Arun Jaitley while briefing media persons after the GST Council meeting here.
“We have adopted twin definitions of affordable housing-one on basis of the carpet area and second on the basis of cost,” he said.
“In metros, a flat of 60 square meter carpet area and costing Rs 45 lakh in the apartment will fall in the affordable housing category. In non-metros, the size will be 90 square meter carpet area and costing Rs 45 lakh,” said Jaitley.