MENU

New GST rates - explained

By Lodha 08 March 2019

What’s the new GST rate?

The Goods and Services Tax Council had announced reduction in the tax on under-construction houses to 5% (without input tax credit) from 12% earlier. While for affordable housing* the rate was reduced to 1% (without input tax credit) from 8% earlier. 

*Definition of Affordable housing shall be? 

Houses with a carpet area upto 60 square meter (approx. 645 square feet)  in metro cities** and 90 square meters (approx. 960 square feet) in non-metro cities having value upto INR 45,00,000/- price bracket (both for metro and non-metro cities) will be considered affordable housing. The effective GST rate on these houses will be 1% (without input tax credit).

**Metro cities are Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR). 

Are these rates mandatory?  

As per the clarification by the GST council on 19th March, developers and builders can opt to either charge the GST as per the old rates, with input tax credit or the new rates, without input tax credit.

From when will it be effective? 

This will be effective from 1st April, 2019.

TAGS

COMMERCIAL

Similar Blog Posts

Buying-Guide

Checklist for first time hom...

BY LODHA
10-04-2020

The entire process of buying a home has seen a sea change of

TAGS

Buying-Guide

Under-construction vs. ready...

BY Lodha
04-06-2020

There exists an inherent dilemma about the kind of houses to look for - under construction o

TAGS

Buying-Guide

Everything you need to know ...

BY LODHA
07-05-2020

Home loan is by far the most common type of loan that’s availed by individual

TAGS

Residential
Buying-Guide

Looking to buy a house post ...

BY Lodha
29-05-2020

The COVID pandemic has brought about sweeping changes in our lives. It has compelled us to view t

TAGS

Buying-Guide

Integrated townships – all...

BY Lodha
03-07-2020

A well-developed township offers a plethora of advantages – a great community, better quality o

TAGS

Buying-Guide

Tips to repay your home loan...

BY LODHA
03-04-2020

Along with the joys of buying a dream home, comes the weight of repaying the home loan. Despite t

TAGS

Buying-Guide

Why branded developers are t...

BY LODHA
27-03-2020

Owning a home is every person’s dream and a lot is invested in buying one. Most people invest a

TAGS

Buying-Guide

Ideal Age To Buy A Home- Sho...

BY Lodha
20-03-2020

Owning a home continues to be a priority for most Indians. However, this is step is generally tak

TAGS

Property Type

    Location

     

    Configuration(BHK)

      Budget (Approx.)

      Possession