Real estate sector worried about raised costs due to GST

Real estate developers across the nation are worried that if the industry falls under the 18% GST tax bracket and the stamp duty is not subsumed, then the overall cost of properties could rise by a discernible margin. According to the amended bill passed in Rajya Sabha earlier this month, land leasing, purchase of under-construction properties and renting of commercial properties will be taxable events under GST.

Latest update from GST council meetings

24th June 2022
The 47th GST Council meeting was held on the 28th and 29th of June 2022 in Chandigarh. Union FM Nirmala Sitharaman chaired this meeting and made recommendations to revise rates for revenue augmentation and correction of inversion while pruning the GST exemption list. Compliance relief was granted to e-commerce suppliers and composition taxpayers.

29th December 2021
The 46th GST Council meeting was held on 31st December 2021 in New Delhi. Union FM Nirmala Sitharaman led meeting has decided to defer the GST rate hike to 12% for textiles.

1st September 2021
45th GST Council meeting was held on 17th September 2021. Tax concessions on COVID-19 essentials got extended, Matter on GST compensation to states was taken up, correction of inverted tax structure, etc were on the agenda.

28th May 2021
43rd GST Council meeting took place on 28th May 2021. The Council approved the GST amnesty scheme to be re-introduced, the late fee was rationalised for all taxpayers, especially for small taxpayers and IGST is exempted on import of COVID treating equipment and relief materials up to 31st August 2021.

This tax will include the VAT and service tax that consumers pay currently, but will not subsume the stamp duty. The National Real Estate Development Council (Naredco) is worried that allowing stamp duty and other local body taxes to continue might increase property rates. The association believes that GST for the real estate sector should not be more than 12% and has requested the government for the same.

As reported in The Hindustan Times

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