- The GST Council has decided that (a) Under construction properties priced over ₹45 lakh will attract 5% GST (Goods and Services Tax), instead of 12% and (b) A residential property priced at ₹45 lakh or below will now be defined as “affordable” and taxed at 1% from 8% earlier.
- However, builders will not be able to claim input tax credit (ITC) under the new GST rates.Input tax credit is the tax that a business pays on a purchase and that it can use to reduce its tax liability when it makes a sale. In other words, businesses can reduce their tax liability by claiming credit to the extent of GST paid on purchases.
- GST (Goods and Services Tax) is an indirect tax that has replaced many Central and State taxes like excise duty, VAT and service tax. It is a single comprehensive tax levied on all goods and services produced in India as well as those imported from other countries.
- Goods & Services Tax Council is a constitutional body for making recommendations to the Union and State Government on issues related to Goods and Service Tax.GST Council is a joint forum of the Centre and the States. It consists of the following members:(a) The Union Finance Minister is the Chairperson (b) The Union Minister of State, in-charge of Revenue of finance and (c) The Minister In-charge of finance or taxation or any other Minister nominated by each State Government.
