GST Council in the 34th meeting held on 19th March, 2019 at New Delhi discussed the operational details for implementation of the recommendations made by the council in its 33rd meeting for lower effective GST rate of 1% in case of affordable houses and 5% on construction of houses other than affordable house. The outcome of the meeting are mentioned below:
- Option given to ongoing projects(both construction and booking commenced before March 31, 2019 and which will not be completed by March 31, 2109) are given an option to either pay at new rates or at the old rates(12% or 8% with ITC). The option need to be exercised within the prescribed time limit.
- New Projects commencing from April 01, 2019 will attract new rates (1% on affordable houses and 5% on normal houses). The new rates are applicable subject to ITC not being availed and 80% of the inputs and input services are availed from registered persons.