The 34th GST council under the chairmanship of Arun Jaitley meeting which is scheduled to meet Today to discuss priority issues related to introduction of lower Goods and Services Taxes (GST) for real state sector.
At the meeting, the Council members are expected to take a decision on the transition provision and other related issues for the implementation of lower GST rates for the real estate business. However, their will be no deliberations on issues pertaining directly to rates as that would violate model code of conduct (MCC) which has been in place since 10th march.
Earlier, in its previous meeting in February the Goods and Services Tax Council gave its approval nod to lower the tax rate on under-construction properties to 5%, from the previous 12%.
As per media reports, the council will also discuss and might give its approval to the new rules determining how much credit builders can use against taxes paid on raw materials and services to settle their final tax liability. The real state sector will be shifting to a new tax regime from the next fiscal.
Currently, 12% GST is applicable with input tax credit on payments made for under-construction property or ready-to-move-in flats where completion certificate is not issued at the time of sale. Meanwhile, the existing tax rate for affordable housing is fixed at 8 per cent.