GST Council to Meet Today, May Announce Rate Cut for Real Estate
A report had said that the move would boost buying of under-construction houses as the current GST rates forced buyers to go for ready-to-move-in properties.
A labourer takes a break from her work at the construction site of a residential complex in Noida. (Photo: Reuters)
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New Delhi: The GST Council is expected to announce a cut in the Goods and Services Tax (GST) for real estate as well as address the issue of tax rate on lottery at its meeting on Sunday.
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 per cent, without input credit, from 12 per cent and for affordable housing, 3 per cent from 8 per cent.
The move was not implemented as non-BJP ruled states had opposed announcing of the decision in their absence in the last meeting, held through video conference. Interim finance minister Piyush Goyal had favoured a cut in tax rates for real estate.
A PTI report had said that the move would boost buying of under-construction houses as the current GST rates forced buyers to go for ready-to-move-in properties.
Meanwhile, the meeting is also expected to address the issue of tax rate on lottery. A panel headed by Maharashtra finance minister Sudhir Mungatiwar has recommended a uniform rate of 18 per cent or 28 per cent on lottery.
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 per cent, without input credit, from 12 per cent and for affordable housing, 3 per cent from 8 per cent.
The move was not implemented as non-BJP ruled states had opposed announcing of the decision in their absence in the last meeting, held through video conference. Interim finance minister Piyush Goyal had favoured a cut in tax rates for real estate.
A PTI report had said that the move would boost buying of under-construction houses as the current GST rates forced buyers to go for ready-to-move-in properties.
Meanwhile, the meeting is also expected to address the issue of tax rate on lottery. A panel headed by Maharashtra finance minister Sudhir Mungatiwar has recommended a uniform rate of 18 per cent or 28 per cent on lottery.