GST Council Meet Latest Update
The latest meeting-33rd GST Council meeting is rescheduled on 24th February 2019 from earlier date 20th February 2019.
It was chaired by the Finance Minister Arun Jaitley. Real estate was in limelight.
This is the first one after the Interim Budget 2019.
The GST rates were slashed on the under-construction houses without ITC benefit; No changes to GST Rate on lottery or Cement.
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. 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