Sunday, February 24, 2019

Outcome of 33rd GST Council Meetings

GST Council has principally agreed on following during 33rd GST Council meeting:

1. GST rate for Affordable housing will be 1% Without ITC. (Currently this is being taxed at 8% with ITC)

2. GST rate for normal Housing will be 5% Without ITC (Currently this is being taxed at 12% with ITC)

3. Criteria for Affordable Housing :

In the case of Tier 1 cities: 60 meters AND Rs. 45 Lakhs
In the case of other cities: 90 meters AND Rs. 45 Lakhs:

4. The above shall be applicable from 1st April 2019.

5. A detailed explanation regarding the transition phase for applicability of above shall be worked out and issued in a notification and circular later. It will consider things such as

a. How much percentage of purchase has to be from a registered dealer in case of Number of shops in case of the housing project as ITC of the same shall not be available.
b. If Housing project consists of Some of the shops, what will be the taxability for such shops?

6. Intermediate tax on development right, such as TDS, JDA, lease premium, FSI shall be exempted only for such residential property on which GST is payable.

7. The decision regarding the GST rate on Lottery will be discussed in the following meeting. (Presently GST rate on State Run lottery is 12% and State Authourized lottery which is managed by agents is 28%)

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