GST Council, Rate Cuts For Real Estate on Sunday

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    The GST Council may announce a rate cut in the Goods and Services Tax (GST) for real estate as well as the tax rates on lottery at its meeting on Sunday. Gujarat’s Deputy Chief Minister, Nitin Patel suggested to bring down the rates on Under-Construction Properties to 5% without input tax credit (ITC) from 12% on affordable housing, reduces to 3% from 8%.

    GST

    On the last meeting, many opposition-ruled states have disagreed to make the decision without a physical meeting to decide on critical issues like real estate. Therefore Union Finance Minister, Arun Jaitley has announced the meeting for the final decision on GST rates of real estates on upcoming Sunday. Finance Minister, Piyush Goyal has also favoured a cut in tax rates for real estate saying,” Our Government wants to reduce the burden of GST on home buyers and GST Council to appoint the group of the minister to examine and make the suggestion in this issue earlier.”

    This meeting is also expected to cover the issue of the tax rate on the Lottery. Maharashtra’s Finance Minister, Sudhir Mungatiwar who is heading a panel has recommended changing the existing tax slab on lottery from 12% and 28% (State and Non-State Organised) to a fixed rate of 18% or 28%.