GST Rates to Remain Unchanged for Real Estate Sector: Group of Ministers
The Group of Ministers has decided to continue levying GST at applicable rates on the real estate sector, with no further exemptions.
GstReal EstateGroup Of MinistersTaxationAffordable HousingReal EstateSep 25, 2024
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. This decision was made after discussing issues related to the grant of Goods and Service Tax (GST) exemption on the long-term lease of land by private entities and sector-specific exemptions, such as for tourism purposes.
Other issues, such as the taxability of supply of construction services by Co-operative Housing Societies to its members in new projects or redevelopment projects, were also discussed comprehensively. However, it was decided that these issues need to be deliberated further after obtaining relevant data from the states.
The Committee of Officers will examine these issues after obtaining relevant information and data from the states before taking a final decision in the next GoM meeting.
The GoM also reviewed the value limit of Rs 45 lakh for the definition of affordable residential apartments in metropolitan regions. It was decided that inputs from states such as 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 the sale of apartments has been deferred for further examination.
The next meeting of the GoM is likely to be held in Gujarat on October 25.
The decision to continue levying GST at applicable rates on the real estate sector is expected to have a significant impact on the industry. The real estate sector is a significant contributor to the country's GDP, and the GST rates have been a major point of discussion among stakeholders.
The GoM's decision is seen as a positive move by the government to boost the real estate sector, which has been facing several challenges in recent times.
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 meeting discussed issues related to the grant of Goods and Service Tax (GST) exemption on the long-term lease of land by private entities and sector-specific exemptions, such as for tourism purposes.
What is the next step for the issues related to taxability of supply of construction services by Co-operative Housing Societies?
The Committee of Officers will examine these issues after obtaining relevant information and data from the states before taking a final decision in the next GoM meeting.
What is the current value limit for the definition of affordable residential apartments in metropolitan regions?
The current value limit is Rs 45 lakh, but the GoM has decided to take inputs from states to arrive at a consensus on the issue.
When is the next meeting of the GoM scheduled to be held?
The next meeting of the GoM is likely to be held in Gujarat on October 25.
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