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GST council meeting updates: GST on under-construction and affordable housing slashed to 5% and 1%

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| Updated: Feb 25, 2019 | Category: GST, News

In the 33rd GST council meeting, the Union Finance Minister, Arun Jaitley said-“The GST rates on Under-Construction housing would be 5% without ITC. We have accepted this recommendation of the GOM. At the same time, the GOM recommended that the GST on Affordable Housing should be 3%. However, if we want to encourage the Affordable Housing, the GST rates on such properties would be 1%”.

As we discussed in our earlier blog, the GST council will very soon take a strong decision on the GST rate cut on housing properties, so here we are again with new updates.

GST council meeting updates

The GST council meeting was held yesterday .i.e. on Sunday, 24th February 2019. Finance Minister Arun Jaitley took a final decision on GST rates cut on housing properties.

However, on Wednesday, the GST council meeting was held through video-conference. But non-BJP states disagreed to the decision on the issue because of not being physically present in the meeting.

The decision taken by the Finance Minister and the GOM (Group of Ministers) has provided a big relief to the Real Estate Sector. There has been a tremendous GST rate cut on housing.

 “Real estate sector offers employment to quite a large number of people in India and hence, the sector is known as one of the biggest contributors to the national GDP (Gross Domestic Product). The country has a vision of “Housing for All by 2022″. It implies that every Indian citizen would possess a house by 2022, and would be free of slums”, said the GST council in the press note.

Further, Arun Jaitley in his tweet said that-

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