GST Council to clear rules for lower housing rates

New Delhi, March 19

The 34th GST Council meeting on Tuesday will consider implementation of lower Goods and Service Tax (GST) rates for real estate sector, sources said.

In the last meeting, the Council slashed tax rates for under-construction flats to 5 per cent and affordable homes to 1 per cent, effective April 1.

The Tuesday meeting that will take place through video-conference, will only discuss and approve the transition-related issues for the implementation of lower GST rates for the real estate sector.

No other issues related to rates are on the agenda as the Model Code of Conduct for the 2019 Lok Sabha polls is in force.

The Council was expected to give its nod on new rules on how far builders could make use of credit for taxes paid on raw materials and services in settling their final tax liability as the real estate sector moved to a new tax regime from April 1, sources said.

According to sources, the Council is going to clear rules that unused input tax credit for unbuilt houses have to be reversed as on April 1. IANS