GST on real estate: Can developers recover input credit cost from home buyers?

In a decision which would have far-reaching implications for the real estate sector, the GST Council meeting has prescribed a GST rate of 5% without input tax credit for the residential sector and a GST rate of 1% without input tax credit for the affordable housing segment. The changes would be brought into effect from April 1, 2019, and suitable notifications would be issued to give effect to the…