{"id":3620,"date":"2019-02-25T05:03:05","date_gmt":"2019-02-25T05:03:05","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=3620"},"modified":"2021-04-22T16:02:20","modified_gmt":"2021-04-22T10:32:20","slug":"33rd-gst-council-meeting-updates","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/33rd-gst-council-meeting-updates\/","title":{"rendered":"33rd GST council meeting updates: GST on under-construction and affordable housing slashed to 5% and 1%"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In the 33rd GST council meeting, the Union Finance Minister, Arun Jaitley said-&#8220;<em>The GST rates on Under-Construction housing would be 5% without ITC<\/em>. We have accepted this recommendation of the GOM. At the same time, the GOM recommended that the <a href=\"https:\/\/swaritadvisors.com\/gst-registration\" class=\"text-primary\"><strong>GST<\/strong><\/a> on Affordable Housing should be 3%. However, if we want to encourage the Affordable Housing, the <em>GST rates on such properties would be 1%<\/em>&#8220;.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a618fcd14d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a618fcd14d\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/33rd-gst-council-meeting-updates\/#GST_Council_Meeting_Updates\" title=\"GST Council Meeting Updates\">GST Council Meeting Updates<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/33rd-gst-council-meeting-updates\/#New_GST_rates_applicable_to_housing_properties\" title=\"New GST rates applicable to housing properties\">New GST rates applicable to housing properties<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/33rd-gst-council-meeting-updates\/#Effective_date_of_the_GST_rate_cut_on_housing_properties\" title=\"Effective date of the GST rate cut on housing properties\">Effective date of the GST rate cut on housing properties<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/33rd-gst-council-meeting-updates\/#New_definition_of_Affordable_Housing_Properties\" title=\"New definition of Affordable Housing Properties\">New definition of Affordable Housing Properties<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/33rd-gst-council-meeting-updates\/#Benefits_of_new_GST_rates_on_real_estate_sector\" title=\"Benefits of new GST rates on real estate sector\">Benefits of new GST rates on real estate sector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/33rd-gst-council-meeting-updates\/#Review_of_GST_Council_Meeting\" title=\"Review of GST Council Meeting\">Review of GST Council Meeting<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/learning\/33rd-gst-council-meeting-updates\/#Meeting_on_GST_rate_cut_postponed_to_24th_February_2019\" title=\"Meeting on GST rate cut postponed to 24th February 2019\">Meeting on GST rate cut postponed to 24th February 2019<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/learning\/33rd-gst-council-meeting-updates\/#The_deadline_for_filing_GSTR-3B_returns_extends_by_two_days\" title=\"The deadline for filing GSTR-3B returns extends by two days\">The deadline for filing GSTR-3B returns extends by two days<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/learning\/33rd-gst-council-meeting-updates\/#Discussion_on_lotteries_remain_unsolved\" title=\"Discussion on lotteries remain unsolved\">Discussion on lotteries remain unsolved<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/learning\/33rd-gst-council-meeting-updates\/#Deputy_CM_of_Gujarat_proposed_for_3_and_5_rate_cut_on_housing_properties\" title=\"Deputy CM of Gujarat proposed for 3% and 5% rate cut on housing properties\">Deputy CM of Gujarat proposed for 3% and 5% rate cut on housing properties<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/learning\/33rd-gst-council-meeting-updates\/#Takeaway\" title=\"Takeaway\">Takeaway<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_Council_Meeting_Updates\"><\/span>GST Council Meeting Updates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The GST council meeting was held yesterday .i.e. on Sunday, 24th February 2019. <strong>Finance Minister Arun Jaitley<sup><a class=\"text-primary\" href=\"https:\/\/en.wikipedia.org\/wiki\/Arun_Jaitley\"><strong><em>[1]<\/em><\/strong><\/a> <\/sup><\/strong>took a final decision on GST rates cut on housing properties.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>The decision taken by the Finance Minister and the GOM (<strong>Group of Ministers<\/strong>) has provided a big relief to the Real Estate Sector. There has been a tremendous GST rate cut on housing.<\/p>\n\n\n\n<p><span lang=\"EN-IN\">&#8220;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 (<strong>Gross Domestic Product<\/strong>). The country has a vision of &#8220;Housing for All by 2022&#8243;. It implies that every Indian citizen would possess a house by 2022, and would be free of slums&#8221;, said the GST council in the press note. <\/span><\/p>\n\n\n\n<p>Further, Arun Jaitley in his tweet said that-<\/p>\n\n\n\n<figure class=\"wp-block-embed-twitter wp-block-embed is-type-rich is-provider-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">In its 33rd meeting the GST Council has accorded big relief to Real Estate Sector. GST rate on affordable housing has been reduced to 1% from 8% &amp; for others from 12% to 5% for both without ITC.This will give boost to housing for all &amp; fulfill aspirations of Neo\/Middle classes.<\/p>&mdash; Arun Jaitley (@arunjaitley) <a href=\"https:\/\/twitter.com\/arunjaitley\/status\/1099647413474738178?ref_src=twsrc%5Etfw\">February 24, 2019<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"New_GST_rates_applicable_to_housing_properties\"><\/span>New GST rates applicable to housing properties<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>According to the<strong> 33rd GST council meeting<\/strong>, the council made the following recommendations for boosting up the residential segment of the real estate sectors:<\/p>\n\n\n\n<ul><li>GST, on the under-construction properties, would be 5% without ITC (<strong>Input Tax Credit<\/strong>),<\/li><li>While GST, on the affordable housing properties, would be 1% without ITC.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Effective_date_of_the_GST_rate_cut_on_housing_properties\"><\/span>Effective date of the GST rate cut on housing properties<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The decided GST rates on real estate sector would be effective from 1st April 2019.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"New_definition_of_Affordable_Housing_Properties\"><\/span>New definition of Affordable Housing Properties<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A residential flat or house with a carpet area of up to 60 sq.m in metropolitan cities and 90 sq.m in non-metropolitan cities having a value up to Rs. 45 lacs will come under affordable housing property.<\/p>\n\n\n\n<p>Delhi NCR <em>(limited to Delhi, Noida, Greater Noida, Ghaziabad, Faridabad, Gurgaon), Bengaluru, Chennai, Kolkata, Hyderabad, and Mumbai (the whole of MMR<\/em>) come under Metropolitan cities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_new_GST_rates_on_real_estate_sector\"><\/span>Benefits of new GST rates on real estate sector<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>It will speed up the construction sector.<\/li><li>If the buyer receives the completion certificate at the time of sales, then no GST would be applicable on the property.<\/li><li>Most of the buyers would now be able to have their own house because of the 1% GST rates on affordable housing.<\/li><li>There won&#8217;t be any input tax credit applicable to the purchase of housing properties. Therefore, the interests of both buyers and developers will be protected.<\/li><li>As a result of the tax exemption, the number of buyers will increase. In turn, there would be sufficient cash flow in the real estate sector.<\/li><li>Eventually, now, the people will get a better tax structure and adherence to compliances would be easy for the builders.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Review_of_GST_Council_Meeting\"><\/span>Review of GST Council Meeting<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In the last <strong>meeting of GST council<\/strong>, the following decisions were made:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Meeting_on_GST_rate_cut_postponed_to_24th_February_2019\"><\/span>Meeting on GST rate cut postponed to 24th February 2019<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>On <strong>Wednesday, 20th February 2019<\/strong>, 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. Therefore, Arun Jaitley announced that the meeting would take place on Sunday .i.e. on 24th February 2019<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_deadline_for_filing_GSTR-3B_returns_extends_by_two_days\"><\/span>The deadline for filing GSTR-3B returns extends by two days<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>After the meeting on Wednesday, the Finance Minister Arun Jaitley announced that the GST council would discuss the real estate issues on Sunday. Further, the Council extends the deadline of <strong>filing GSTR-3B returns<\/strong> by two days.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Discussion_on_lotteries_remain_unsolved\"><\/span>Discussion on lotteries remain unsolved<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Apart from this, the Council also had a discussion over the differences on issues of housing and lotteries. According to official resources, the lotteries haven&#8217;t yet reached a level where discussions can come to a conclusion.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Deputy_CM_of_Gujarat_proposed_for_3_and_5_rate_cut_on_housing_properties\"><\/span>Deputy CM of Gujarat proposed for 3% and 5% rate cut on housing properties<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The GOM, led by the Nitin Patel, the Deputy Chief Minister of Gujarat, <strong>recommended for 3% and 5% rate cut<\/strong> on the affordable housing properties. Whereas, Manpreet Badal, Finance Minister of Punjab said that because the land is a subject of state, it must not be included in the GST. However, Sushil Kumar Modi, the Deputy Chief Minister of Bihar, proposed for the least rate of 1% on small business operating in residential areas from a 10% carpet area.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Takeaway\"><\/span>Takeaway<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>From the above-discussion on current GST council meeting updates, we have encountered that the decision taken by the GST council is quite a strong move and completely in the favour of Real Estate Sector. The sector will avail a huge benefit whether on the GST rate cut on affordable housing or under-construction properties. We expect that the move will help slums to come out. Furthermore, it will let them buy properties at lower rates and live a better life. Housing is one of the basic needs of every citizen. Considering the same, we can say that the Government has taken quite a wise move and that it really cares for its citizen. Rest, we can wait for a year and find out how much increment in the housing properties will be.<\/p>\n\n\n\n<p>For more info on GST council meeting updates, <a class=\"text-primary\" href=\"\/contact-us\"><strong>Contact Swarit Advisors<\/strong><\/a>.<\/p>\n\n\n\n<div class=\"read\"><p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/know-about-gst-registration-process-step-by-step\/\">Know About GST Registration process step by step<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In the 33rd GST council meeting, the Union Finance Minister, Arun Jaitley said-&#8220;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 [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":3621,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3,1],"tags":[1068],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3620"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=3620"}],"version-history":[{"count":34,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3620\/revisions"}],"predecessor-version":[{"id":18740,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3620\/revisions\/18740"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/3621"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=3620"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=3620"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=3620"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}