The Goods and Services Tax (GST) Council on February 24 cleared the proposal for lowering the GST rates for real estate.

GST payable for under construction properties will be 5 percent for normal housing, Finance Minister Arun Jaitley said. For the affordable housing category, tax at the rate of 1 percent will be levied. However, in both cases, input tax credit (ITC) cannot be claimed.

Properties costing up to Rs 45 lakh will be considered affordable. Similarly, properties with a carpet area up to 60 sqmt for metros and 90 sqmts for non-metros will be considered affordable.

The rate cuts will be effective from April 1.