33rd GST Council Meeting Decision held on Feb 24, 2019

GST Council Meeting:

• Meeting adjourned from 20th Feb to 24th Feb 2019.
• The real estate sector is one of the largest contributors to the national GDP and provides employment opportunities to large numbers of people. “Housing for all by 2022” envisions that every citizen would have a house and the urban areas would be free of slums. There are reports of a slowdown in the sector and low off-take of under-construction houses that needs to be addressed. To boost the residential segment of the real estate sector, the following recommendations were made by the GST Council.
• The GST Council met on 20th February 2019 for a brief time to start with the discussions on real estate. However, considering that a meet via video conferencing cannot support the detailed discussion on issues crucial such as real estate taxation, the meeting was adjourned. No discussions were initiated on the Lottery.
• The GST Council also extended the GSTR-3B Due date for the month of January 2019 by two days to 22nd February 2019.
• GST shall be levied at an effective GST rate of 5% without ITC on residential properties outside the affordable segment. GST shall be levied at an effective GST of 1% without ITC on affordable housing properties. The new rate shall become applicable from April 01, 2019.
• The definition of affordable housing shall be A residential house/flat of carpet area of up to 90 sq. meters in non-metropolitan cities/towns and 60 sq. meters in metropolitan cities having value up to Rs. 45 lakhs.
• GST exemption on TDR/ JDA, long term lease FSI Intermediate tax on development right, such as TDR, JDA, lease FSI shall be exempted only for such residential property on which GST is payable. Details of the scheme shall be worked out by an officers committee and shall be approved by the GST Council in a meeting to be called specifically for this purpose.
• Details of the scheme shall be worked out by an officers committee and shall be approved by the GST Council in a meeting to be called specifically for this purpose.
• GST Council decided that the issue of the tax rate on the lottery needs further discussion in the GOM constituted in this regard. The decisions of the GST Council have been presented in this note in simple language for easy understanding.  The same would be given effect to through Gazette notifications/ circulars which alone shall have the force of law.