GST Rates to Continue for Real Estate Sector: Group of Ministers
The Group of Ministers on boosting the real estate sector under GST regime has recommended that no further exemption is required and that GST at applicable rates will continue to be levied.
GstReal EstateGroup Of MinistersTaxationAffordable HousingReal Estate MaharashtraSep 25, 2024
The issues pertaining to grant of Goods and Service Tax (GST) exemption on the long term lease of land by private entity and sector specific exemption such as for tourism purposes were discussed at length. After careful consideration, the GoM unanimously agreed and recommended that no further exemption is required and that GST at applicable rates will continue to be levied on the same.
The taxability of supply of construction services by Co-operative Housing Societies to its members in new projects or redevelopment projects was also discussed comprehensively. Various views emerged during the discussion, and it was decided that these issues need to be deliberated further after obtaining the relevant data from the States.
The Committee of Officers will examine all these issues after obtaining relevant information/data from the States before taking a final decision in the next GoM meeting.
The value limit of Rs 45 lakh for the definition of affordable residential apartment for a metropolitan region was reviewed. It was decided that inputs from the States of Karnataka, West Bengal, Tamil Nadu, Uttar Pradesh, Maharashtra, and Delhi are needed to arrive at a consensus on the issue.
The issue related to determining the value of land for arriving at the value of construction services in case of sale of apartments has been deferred for further examination.
The next meeting of GoM is likely to be held in Gujarat on October 25.
Information
The Group of Ministers (GoM) on boosting the real estate sector under GST regime was formed to address the issues faced by the sector and to provide recommendations for the growth of the sector.
The Goods and Service Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. It was introduced on July 1, 2017, and has since replaced multiple taxes levied by the central and state governments.
Frequently Asked Questions
What was the outcome of the fourth meeting of the Group of Ministers on boosting the real estate sector under GST regime?
The GoM unanimously agreed and recommended that no further exemption is required and that GST at applicable rates will continue to be levied on the same.
What issues were discussed during the meeting?
The issues pertaining to grant of GST exemption on the long term lease of land by private entity and sector specific exemption such as for tourism purposes were discussed.
What is the next step for the issues discussed during the meeting?
The Committee of Officers will examine all these issues after obtaining relevant information/data from the States before taking a final decision in the next GoM meeting.
When is the next meeting of the Group of Ministers scheduled to be held?
The next meeting of GoM is likely to be held in Gujarat on October 25.
What is the purpose of the Group of Ministers on boosting the real estate sector under GST regime?
The GoM was formed to address the issues faced by the sector and to provide recommendations for the growth of the sector.
Related News Articles
Sustainability Takes Center Stage in Indian Real Estate
Manit Rastogi, founding partner of Morphogenesis, discusses the increased demand for sustainability and eco-friendly homes in Indian real estate.
Ajay Devgn Rents Out Office Space in Mumbai's Andheri for Rs 7 Lakh Monthly
The actor's office space in Signature Tower, located along Veera Desai Road in Oshiwara, has been leased for a 5-year term.
MahaRERA Recovers ₹175 Crore from Real Estate Developers in Maharashtra
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has recovered ₹175 crore from real estate developers who failed to hand over apartments to home buyers in Mumbai and Pune.
ED Seizes Rs 31 Crore and Luxury Cars in Raids on NCR Real Estate Companies
The Enforcement Directorate (ED) has conducted raids on two NCR-based real estate companies, seizing bank deposits worth over Rs 31 crore and luxury cars. The companies are accused of defrauding homebuyers to the tune of Rs 500 crore.
Pune's Home Prices Soar by 28%, Forcing Residents to Consider Outskirts
In 2023, the real estate market in Pune witnessed a significant surge of 28% in home prices. This increase has pushed many residents to look for affordable housing options in the city's outskirts, as the core areas have become increasingly expensive.
Mumbai: BMC Takes Ward-Level Action to Tackle Air Pollution
Following the Bombay High Court's criticism, the Brihanmumbai Municipal Corporation (BMC) has intensified its efforts to control air pollution with ward-level inspections and strict regulations for construction sites.