August 05, 2021 22:01 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
India 'closely monitoring' situation in Afghanistan, calls for 'immediate ceasefire' | Kashmir has seen real democracy, empowerment post scrapping of Article 370: S Jaishankar | West Bengal mulling over reopening of schools, colleges shut due to COVID-19 | Tokyo Olympics: Ravi Kumar Dahiya wins wrestling silver after losing to Russian Zavur Uguev | Tokyo Olympics: India defeat Germany 5-4 to win bronze in men’s hockey
GST Council approves 5 percent rate for under-construction properties

GST Council approves 5 percent rate for under-construction properties

India Blooms News Service | @indiablooms | 24 Feb 2019, 12:52 pm

New Delhi, Feb 24 (UNI/IBNS) In what is seen as an attempt to give relief to middle class and as well a timely boost to the real estate sector, the Goods and Services Tax (GST) Council, headed by Finance Minister Arun Jaitley, on Sunday announced that the GST payable for under construction properties will be five per cent for normal housing.

"The GST shall be levied at effective GST rate of 5 per cent without input tax credit on residential properties outside affordable segment," an official statement said here.

The GST Council meet was attended among others by Finance Ministers of Bihar Sushil Kumar Modi and of Delhi Manish Sisodia.

The statement said, "Real estate sector is one of the largest contributors to the national GDP and provides employment opportunity to large numbers of people. 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 the GST shall be levied at effective GST rate of 5pc without inputs tax credit on residential properties outside affordable segment and it shall be levied at effective GST of one per cent without input tax credit for affordable housing properties.

The effective date for the new rates shall become applicable from 1st of April, 2019, the statement said.

“We expanded the definition of affordable housing so that aspiring people can buy better houses," the Finance Minister said.