Major issues that will be discussed during the meeting include lowering of GST rates on under-construction flats and houses to 5 per cent and raising the exemption threshold from Rs 20 lakh to Rs 75 lakh for small and medium enterprises.
The all-powerful GST Council, comprising Finance Minister Arun Jaitley and his state counterparts, will hold its 32nd meeting on Thursday. Major issues that will be discussed during the meeting include lowering of GST rates on under-construction flats and houses to 5 per cent and raising the exemption threshold from Rs 20 lakh to Rs 75 lakh for small and medium enterprises. Other agendas for today’s GST Council meeting include composition scheme for small suppliers, levying of calamity cess, and GST rates for the lottery.
In its previous meeting, the GST Council had slashed tax rates on seven items previously placed in the highest tax slab. Rationalising the 28 per cent tax slab, the council had pruned the GST rates on six items to 18 per cent slab and one item to five per cent slab. In total, the panel had reduced rates on 23 goods and services.
Earlier Jaitley had said that the next meeting would consider lowering tax rates on residential properties and raising the threshold limit for MSMEs. Prime Minister Narendra Modi, during a public meeting in Agra on Wednesday, also said that he had urged the GST Council to raise the threshold limit for exemption from levy’s registration to Rs 75 lakh. He also said that houses meant for the middle class should be clubbed in the 5 per cent GST slab.
During the council’s group of ministers’ (GoM) meeting on Sunday, the members also discussed the threshold issue. While the Union Finance Ministry sought to raise the GST exemption threshold limit for MSMEs on the lines of PM’s recommendations, states like Bihar and Delhi pushed to raise the limit for Rs 50 lakh and Rs 40 lakh, respectively, reported Business Standard. The members also opined to levy flat Rs 5,000 GST per year on businesses with a turnover of Rs 50-60 lakh, while Rs 10,000 on those with Rs 60-75 lakh annual revenue, added the daily.
Currently, the Goods and Services Tax (GST) is levied at 12 per cent on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale. However, GST is not levied on buyers of real estate properties for which completion certificate has been issued at the time of sale.
Source- Business Today.