GST Council Cuts Rate On Under Construction Flats To 5% & Affordable Housing to 1%

• The GST Council has announced to cut the GST tax rates on under-construction housing properties to 5 percent without input tax credit (ITC), from the existing 12 percent.
• The Council has also cut GST rates on affordable housing to 1 percent without ITC from the current 8 percent.
• The new tax rates will be effective from April 1, 2019

Definition of affordable housing

• The Council has widened the scope of affordable housing as, 
• 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).

Points to Remember:

1. Rate of GST without ITC on under-construction housing properties
2. Rate of GST without ITC on affordable housing