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Government to discuss real estate under GST

Courtesy/By: Saurav Tibrewal | 20 Oct 2017

In the latest move to increase the ambit of GST government is exploring options to bring the real estate sector under the ambit of GST. The matter will be discussed in the next meeting of the GST Council to be held on November 9 in Guwahati. According to Finance Minister Mr. Arun Jaitley it is the one sector where maximum amount of tax evasion and cash generation takes place hence some regulatory measures are required. Mr. Jaitley further informed that some of the states are in favour of it, whereas some are opposing it, so in the next meeting all the possible perspectives will be discussed and the council will try to arrive at a consensus.

At present 12 percent GST is levied on construction of a complex, building, civil structure or intended for sale to a buyer, wholly or partly. However, land and other immovable property have been exempted from the GST.

The move to bring all these properties under one umbrella will ultimately benefit consumers who will have to pay one “final tax” as informed by Mr Jaitley.

Courtesy/By: Saurav Tibrewal | 20 Oct 2017