GST Council · 2019-02-20 · Video conference (20 February) and Vigyan Bhawan, New Delhi (24 February)

33rd GST Council meeting: key decisions

The 33rd meeting began by video conference on 20 February 2019 and reconvened in New Delhi on 24 February to decide on real estate. To support housing, the Council moved residential property to low effective rates without input tax credit: 1 per cent for affordable housing and 5 per cent for other homes, from 1 April 2019. It defined affordable housing by carpet area and value and exempted intermediate transactions in development rights. The lottery rate issue was referred back to the Group of Ministers.

Chaired by Arun Jaitley, Union Finance Minister.

Rates

  • Fixed an effective rate of 5 per cent without input tax credit on residential property outside the affordable segment.
  • Fixed an effective rate of 1 per cent without input tax credit on affordable housing.
  • Defined affordable housing as carpet area up to 60 sq m in metropolitan cities or 90 sq m elsewhere, with value up to Rs. 45 lakh.
  • Exempted transfer of development rights, joint development agreements, long-term lease premiums and FSI for residential property on which GST is payable.

Other

  • Made the new real estate rates applicable from 1 April 2019, with transition details to be worked out by officers.
  • Sent the question of GST rates on lotteries back to the Group of Ministers for further discussion.

Official documents

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