Ministers suggest increasing affordable housing limit to Rs 5.5 million

04 Nov 2024 CW Team

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.

Infrastructure Urban

05 Nov 2025

TBO Tek Q2 Profit Climbs 12%, Revenue Surges 26% YoY

TBO Tek Limited one of the world’s largest travel distribution platforms, reported a solid performance for Q2 FY26 with a 26 per cent year-on-year increase in revenue to Rs 5.68 billion, reflecting broad-based growth and improving profitability.The company recorded a Gross Transaction Value (GTV) of Rs 8,901 crore, up 12 per cent YoY, driven by strong performance across Europe, MEA, and APAC regions. Adjusted EBITDA before acquisition-related costs stood at Rs 1.04 billion, up 16 per cent YoY, translating into an 18.32 per cent margin compared to 16.56 per cent in Q1 FY26. Profit after tax r..

Infrastructure Energy

05 Nov 2025

Northern Graphite, Rain Carbon Secure R&D Grant for Greener Battery Materials

Northern Graphite Corporation and Rain Carbon Canada Inc, a subsidiary of Rain Carbon Inc, have jointly received up to C$860,000 (€530,000) in funding under the Canada–Germany Collaborative Industrial Research and Development Programme to develop sustainable battery anode materials.The two-year, C$2.2 million project aims to transform natural graphite processing by-products into high-performance, battery-grade anode material (BAM). Supported by the National Research Council of Canada Industrial Research Assistance Programme (NRC IRAP) and Germany’s Federal Ministry for Economic Affairs a..

Infrastructure Urban

05 Nov 2025

Antony Waste Q2 Revenue Jumps 16%; Subsidiary Wins Rs 3,200 Cr WtE Projects

Antony Waste Handling Cell Limited (AWHCL), a leading player in India’s municipal solid waste management sector, announced a 16 per cent year-on-year increase in total operating revenue to Rs 2.33 billion for Q2 FY26. The growth was driven by higher waste volumes, escalated contracts, and strong operational execution.EBITDA rose 18 per cent to Rs 570 million, with margins steady at 21.6 per cent, while profit after tax stood at Rs 173 million, up 13 per cent YoY. Revenue from Municipal Solid Waste Collection and Transportation (MSW C&T) reached Rs 1.605 billion, and MSW Processing re..