Home      Free WhatsApp Updates      Services      Subscription Plans
🔒 Login    

Composition Scheme under GST

    

Treatment of Job Work in GST and Form ITC-04

    

Paver blocks laid down for parking of cars to avoid quicker wear & tear due to accumulation of water & dust amounts to construction of immovable property and not eligible for GST Input: Says AAR

    

Rule 36(4) - Buyer's ITC at the mercy of supplier?

    

High Court stayed interest, penalty and further investigation of other products of Whirlpool in response to writ filed by them.

    

Poultry Meal to attract 5% GST whereas Poultry Fat to attract 12% GST: Says AAR

    

GST on lease premium charges, annual lease rentals and maintenance charges paid on lease of land for own bulding construction is restricted and not eligible for ITC as per section 17(5)(d): Says AAR

    

Supply of food to Hospital on outsourcing basis to hospital patients shall be chargeable to 5% GST with no input w.e.f. 27.07.2018: Says AAR

    

GST Profiteering of Rs. 1,57,200 established in the case of supply of Duracell Battery AA/6 by respondent.

    

Revocation of GST Registration Applications

    
View all
Subscription Plans   
TaxReply.com - Free Tax updates for All
GST Library
Taxreply tweets
GST News
About GST Library
E-Books
Subscription Plans
Offers New
GST Rates Reckoner
Classification of Goods and Services
Classification of Goods and Services (Search)
Free Trial
GST Set-off Calculator
Full Site Search
GST Act / Rules
GST Act / Rules - Latest Amendments
GST Amendment Statistics
GST Notifications / Circulars Press Releases +
National Anti-Profiteering Authority
GST Case Laws (All)
↳ AAR Orders
↳ AAAR Orders
↳ NAA Orders
↳ High Court Orders
↳ Supreme Court Orders
GST Forms   
E-way Bill
↳ E-way Notifications
↳ E-way Bill News
↳ E-way Bill Rules
↳ E-way Bill FAQ
Finance Bill

Ministry of Finance

Recommendations of the 33rd GST Council meeting

Posted On: 24 FEB 2019 5:51PM by PIB Delhi

Real estate sector is one of the largest contributors to the national GDP and provides employment opportunity to large numbers of people. “Housing for All by 2022” envisions that every citizen would have a house and the urban areas would be free of slums. There are reports of slowdown in the sector and low off-take of under-construction houses which needs to be addressed. To boost the residential segment of the real estate sector, following recommendations were made by the GST Council in its 33rd meeting held today:

  1. GST rate:

    1. GST shall be levied at effective GST rate of 5% without ITC on residential properties outside affordable segment;

    2. GST shall be levied at effective GST of 1% without ITC on affordable housing properties.

 

  1. Effective date: The new rate shall become applicable from 1st of April, 2019.

 

  1. Definition of affordable housing shall be:-

A residential house/flat of carpet area of upto 90 sqm in non-metropolitan cities/towns and 60 sqm in metropolitan cities having value upto Rs. 45 lacs (both for metropolitan and non-metropolitan cities).

Metropolitan Cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR).

  1. 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.

 

  1. 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.

 

  1. Advantages of the recommendations made:

The new tax rate in principle was approved by the Council taking into consideration the following advantages:-

  1. The buyer of house gets a fair price and affordable housing gets very attractive with GST @ 1%.

  2. Interest of the buyer/consumer gets protected; ITC benefits not being passed to them shall become a non-issue.

  3. Cash flow problem for the sector is addressed by exemption of GST on development rights, long term lease (premium), FSI etc.

  4. Unutilized ITC, which used to become cost at the end of the project gets removed and should lead to better pricing.

  5. Tax structure and tax compliance becomes simpler for builders.

 

  1. GST Council decided that the issue of tax rate on lottery needs further discussion in the GoM constituted in this regard.

The decisions of the GST Council have been presented in this note in simple language for easy understanding.  The same would be given effect to through Gazette notifications/ circulars which alone shall have force of law.


Subscribe to Complete GST Library





Published by

TaxReply

on Feb 24, 2019


Post your comment here !


3327