New Delhi: The GST council, headed by Union Finance Arun Jaitely, is scheduled to meet on Sunday and is likely to announce a cut in the Goods and Services Tax (GST) for real estate. As per a PTI report, the move would boost buying of under-construction houses as the current GST rates forced buyers to go for ready-to-move-in properties. Also Read - Good News For Real Estate: Delhi-NCR Witnesses Increasing Demand For Affordable Homes
A panel of ministers on real estate sector led by Gujarat deputy chief minister Nitin Patel had suggested bringing down the rates on under-construction properties to 5%, without input credit, from 12% and for affordable housing, 3% from 8%. Also Read - Luxury Penthouse in Hong Kong Sells For Whopping Rs 420 Crore, Most Expensive Flat Ever Sold In Asia!
Interim finance minister Piyush Goyal had also favoured a cut in tax rates for real estate saying,”“Our government wants the GST burden on home buyers to be reduced and accordingly we have moved the GST Council to appoint a Group of Ministers to examine and make recommendations in this regard at the earliest.” Also Read - Budget 2021: Interesting Facts About Indian Budget And How It Changed Over The Years
The 34th GST Council meeting is also expected to address the issue of tax rate on lottery. A state ministerial panel set up to review the tax rate on lottery has favoured a uniform GST rate of either 18 per cent or 28 per cent, PTI reported. Currently, a state-organised lottery attracts 12 per cent GST while a state-authorised lottery attracts 28 per cent tax.
What happened in 33rd GST council meeting?
On Wednesday, the 33rd meeting of the GST Council, held through video conferencing decided to extend the deadline for filing summary sales return – GSTR-3B – for January by two days till February 22.
“Considering the speed at which returns are getting filed (thousands of returns being filed every hour), the suggestion before the GST Council was to extend the deadline by two days for all states; and since some areas are facing disturbance, for Jammu & Kashmir it be extended till February 28. So we took that decision,” Finance Minister Arun Jaitley had said after the meet.
During the meeting, opposition-ruled states like Delhi and Kerala demanded that a physical meeting be held to decide on crucial issues like real estate and lottery, while the representative from Punjab flagged a technical point relating to land cost being included while deciding on GST rate.