GST Exemptions for Real Estate Sector Under Review: What You Need to Know
The Group of Ministers (GoM) has decided against granting further GST exemptions on the long-term lease of land by private entities, sparking a debate on the future of the real estate sector. Maharashtra Minister Aditi Tatkare and other prominent official
Gst ExemptionsReal Estate SectorGroup Of MinistersMaharashtra Minister Aditi TatkareBihar Deputy Cm Samrat ChoudharyReal Estate MaharashtraSep 25, 2024
Hosted by Goa Chief Minister Pramod Sawant, the gathering saw participation from prominent officials like Bihar Deputy CM Samrat Choudhary and Maharashtra Minister Aditi Tatkare. The meeting was an opportunity for state governments to discuss various issues related to the GST, including the taxation of construction services by co-operative housing societies.
One of the key issues discussed at the meeting was the taxation of construction services by co-operative housing societies. The GoM decided to gather further data and inputs from multiple states to finalize decisions on other pending matters, including the value limit for affordable residential apartments and the valuation of land in construction services.
The next meeting of the GoM is set for October 25, and it is expected that the group will take a final decision on the GST exemptions for the real estate sector. The decision is likely to have a significant impact on the sector, which has been struggling to cope with the GST regime.
The real estate sector has been seeking relief from the GST for several years, citing the high tax rates and the complexity of the tax regime. The sector has been arguing that the GST rates are too high and are affecting the demand for housing. The GoM's decision is likely to be a setback for the sector, which was hoping for some relief from the GST.
In a statement, Maharashtra Minister Aditi Tatkare said that the GoM's decision was a disappointment for the real estate sector. She said that the sector was hoping for some relief from the GST, but the GoM's decision has dashed those hopes. She added that the sector would continue to lobby for relief from the GST.
The GoM's decision is also likely to affect the common man, who is already struggling to cope with the high prices of housing. The GST rates on housing are already high, and the GoM's decision is likely to make things worse.
In conclusion, the GoM's decision on the GST exemptions for the real estate sector is a significant development that is likely to have far-reaching implications for the sector. The decision is likely to affect the demand for housing and the prices of housing, and it is likely to have a significant impact on the common man.
The Group of Ministers (GoM) is a committee of state ministers that was set up to discuss and finalize the GST rates for various sectors. The GoM is headed by the Union Finance Minister and includes state ministers from various states.
Frequently Asked Questions
What is the GST rate on housing?
The GST rate on housing is 12% for under-construction properties and 5% for affordable housing.
What is the value limit for affordable residential apartments?
The value limit for affordable residential apartments is currently Rs 45 lakhs.
What is the valuation of land in construction services?
The valuation of land in construction services is currently based on the circle rate.
Will the GoM's decision affect the demand for housing?
Yes, the GoM's decision is likely to affect the demand for housing.
Will the GoM's decision affect the prices of housing?
Yes, the GoM's decision is likely to affect the prices of housing.
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