Opposition-ruled states such as Delhi, West Bengal, Kerala, Chhattisgarh and Punjab on Wednesday sought to block a reduction in GST
rate on under-construction houses, arguing that the decision should not
be taken through video-conference. But the Centre and BJP-ruled states
deferred a
decision until Sunday, when the GST Council will reconvene a meeting to decide on rate rationalisation for a large part of the real estate sector and lottery.
“The discussion which remained incomplete today through video conferencing... Few ministers expressed their opinion and the rest will express their opinion and we will try and take a decision on this issue on Sunday. So the meeting stands adjourned. We will meet on Sunday,” said finance minister Arun Jaitley, adding that he will seek to take a decision based on consensus, which has been the practice so far.
During the last three meetings, Opposition-ruled states have objected to proposals such as rate reduction and increase in the threshold for registration for paying GST but later agreed as they did not want to be seen as anti-consumer, especially ahead of this summer’s general elections.
The issue of lowering GST for under-construction houses has been pending with the Council for at least three meetings. It has also been discussed threadbare by a group of ministers, which had recommended paring the rate from 18% with input tax credit to 5% without credit for taxes paid on raw material and inputs such as cement, steel, paint and sanitary fittings. In case of affordable houses, the rate is proposed to be lowered from 12% to 3%. Real estate developers have, however, argued that the withdrawal of input tax credit will impact the affordable housing segment. After accounting for a set off for the value of land, the effective rate for affordable houses works out to 8%, while for other under-construction projects it is 12%.
decision until Sunday, when the GST Council will reconvene a meeting to decide on rate rationalisation for a large part of the real estate sector and lottery.
“The discussion which remained incomplete today through video conferencing... Few ministers expressed their opinion and the rest will express their opinion and we will try and take a decision on this issue on Sunday. So the meeting stands adjourned. We will meet on Sunday,” said finance minister Arun Jaitley, adding that he will seek to take a decision based on consensus, which has been the practice so far.
During the last three meetings, Opposition-ruled states have objected to proposals such as rate reduction and increase in the threshold for registration for paying GST but later agreed as they did not want to be seen as anti-consumer, especially ahead of this summer’s general elections.
The issue of lowering GST for under-construction houses has been pending with the Council for at least three meetings. It has also been discussed threadbare by a group of ministers, which had recommended paring the rate from 18% with input tax credit to 5% without credit for taxes paid on raw material and inputs such as cement, steel, paint and sanitary fittings. In case of affordable houses, the rate is proposed to be lowered from 12% to 3%. Real estate developers have, however, argued that the withdrawal of input tax credit will impact the affordable housing segment. After accounting for a set off for the value of land, the effective rate for affordable houses works out to 8%, while for other under-construction projects it is 12%.
1 comment:
I was scrolling the internet like every day, there I found this article which is related to my interest. The way you covered the knowledge about the subject and the 2 BHK Flat In Ayodhya Bypass Road was worth to read, it undoubtedly cleared my vision and thoughts towards B 4 BHK Flat In Ayodhya Bypass Road . Your writing skills and the way you portrayed the examples are very impressive. The knowledge about 3 BHK Flat in Ayodhya Bypass Road is well covered. Thank you for putting this highly informative article on the internet which is clearing the vision about top builders in Bhopal and who are making an impact in the real estate sector by building such amazing townships.
Post a Comment