Ministers suggest increasing affordable housing limit to Rs 5.5 million
Real Estate

Ministers suggest increasing affordable housing limit to Rs 5.5 million

A group of ministers (GoM) appointed by the Goods and Services Tax Council to examine the application of GST in the real estate sector believes that the definition of affordable housing should be expanded to Rs 5.5 million from the current Rs 4.5 million, according to sources familiar with the matter.

If the GST Council approves this change, it could provide a substantial boost to the affordable housing sector. Currently, affordable housing is subject to a GST rate of 1%, while other housing projects face a 5% levy. Additionally, the input tax credit (ITC) facility is not available in either case.

The seven-member GoM, led by Goa's Chief Minister Pramod Samant, is also expected to recommend increasing the tax on luxury housing priced above Rs 15 crore and may not offer any relief regarding joint development agreements (JDAs) concerning the application of GST.

According to a person aware of the panel discussions, there was a general consensus that the definition of affordable housing for GST purposes should be enhanced; however, most members opposed applying GST to JDAs. The GoM convened last week in Goa and is anticipated to submit its report ahead of the next GST Council meeting, expected in the second week of November. The final decision on the recommendations will be made by the GoM.

Other members of the GoM include Samrat Choudhary, Deputy Chief Minister of Bihar; Suresh Kumar Khanna, Finance Minister of Uttar Pradesh; KN Balagopal, Finance Minister of Kerala; Aditi Tatkare, Minister for Women and Child Development and GST Council representative for Maharashtra; Harpal Singh Cheema, Finance Minister of Punjab; and Kanubhai Mohanlal Desai, Finance Minister of Gujarat.

The 33rd GST Council meeting in February 2019 defined affordable housing, in the case of flats, as having a carpet area of up to 90 square meters in non-metropolitan cities and towns, and 60 square meters in metropolitan areas.

A group of ministers (GoM) appointed by the Goods and Services Tax Council to examine the application of GST in the real estate sector believes that the definition of affordable housing should be expanded to Rs 5.5 million from the current Rs 4.5 million, according to sources familiar with the matter. If the GST Council approves this change, it could provide a substantial boost to the affordable housing sector. Currently, affordable housing is subject to a GST rate of 1%, while other housing projects face a 5% levy. Additionally, the input tax credit (ITC) facility is not available in either case. The seven-member GoM, led by Goa's Chief Minister Pramod Samant, is also expected to recommend increasing the tax on luxury housing priced above Rs 15 crore and may not offer any relief regarding joint development agreements (JDAs) concerning the application of GST. According to a person aware of the panel discussions, there was a general consensus that the definition of affordable housing for GST purposes should be enhanced; however, most members opposed applying GST to JDAs. The GoM convened last week in Goa and is anticipated to submit its report ahead of the next GST Council meeting, expected in the second week of November. The final decision on the recommendations will be made by the GoM. Other members of the GoM include Samrat Choudhary, Deputy Chief Minister of Bihar; Suresh Kumar Khanna, Finance Minister of Uttar Pradesh; KN Balagopal, Finance Minister of Kerala; Aditi Tatkare, Minister for Women and Child Development and GST Council representative for Maharashtra; Harpal Singh Cheema, Finance Minister of Punjab; and Kanubhai Mohanlal Desai, Finance Minister of Gujarat. The 33rd GST Council meeting in February 2019 defined affordable housing, in the case of flats, as having a carpet area of up to 90 square meters in non-metropolitan cities and towns, and 60 square meters in metropolitan areas.

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?