In Growth of GDP of Nation real estate sector contribution is much higher. This sector provides employment and generates business. In GST Council meeting of 21 Feb 2019 recombination is made for reducing GST Rates on housing properties. The reduced GST Rates will give rise to real estate sector. For affordable housing proposed GST rate is 1% without GST Credit.
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).
For giving relief to buyers of housing propertied GST Rate will be revised. For affordable housing proposed GST Rate is 1 % and in which builder will be eligible to claim GST Credit. And For houses other than affordable housing GST Rate will be 5 % without GST ITC Credit.
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.