GST council cuts rate to boost housinghttps://indianexpress.com/article/business/economy/gst-council-cuts-rate-to-boost-housing-5599456/

GST council cuts rate to boost housing

The proposal to have a uniform rate for state-run and state-authorised lotteries at 18 or 28 per cent was referred back to the Group of Ministers. State-run lotteries now attract 12 per cent GST.

GST council cuts rate to boost housing
The new tax rates will be effective from April 1.

THE GOODS and Services Tax (GST) Council Sunday cut the tax rate for under-construction housing to 5 per cent without input tax credit from the present effective rate of 12 per cent. For affordable housing, the GST rate was reduced to 1 per cent from effective 8 per cent.

Read: Boost to realty sector with GST on under-construction homes cut to 5%

The definition of affordable housing was also redefined by linking it to cost as well as carpet area: Flats costing up to Rs 45 lakh and with carpet area of 60 sq m in metros (Delhi-NCR, Bengaluru, Chennai, Hyderabad, Mumbai-MMR and Kolkata) or 90 sq m in non-metro areas.

The new tax rates will be effective from April 1.

The proposal to have a uniform rate for state-run and state-authorised lotteries at 18 or 28 per cent was referred back to the Group of Ministers. State-run lotteries now attract 12 per cent GST.