The object and service tax (GST) council approved the scheme to implement the new tax structure on housing in the housing projects on Tuesday. It will be very cheap to buy the house from April 1, 2019.
In the last meeting of the GST Council on February 24, the GST rate was reduced to one per cent on the under construction rates. Tax rates on other categories of homes were reduced to five percent. New rates will be effective from April 1.
Revenue Secretary A.B. Pandey, in the Central Finance Ministry, told reporters, “Talking to state governments, companies engaged in housing development business will be given enough time to comply with the new tax structure.”
Approval from the Election Commission
For this 34th meeting of the GST Council, the Finance Ministry had obtained approval from the Election Commission. This meeting took place through video conferencing. In the last meeting, the council had reduced GST from 5 to 5% and reduced the number of affordable houses from eight to 1%. Now the provisions of the necessary changes were discussed in order to implement it.
At the GST Council meeting, the issues related to the implementation of the new tax structure from the current tax structure on the real estate sector and the compliance related issues were discussed. Pandey said that new rates will be applicable to new housing projects from April 1.