GST council meeting: The 32nd GST council meet dod not bring any relief for the real estate sector. A GoM has been set up by the council which will review rates and the matter will be discussed in the next meet
NEW DELHI: The 32nd GST Council meet concluded on Thursday. The meet brought some much-needed relief to the MSMEs as the council doubled the exemption limit and raised the threshold for availing the composition scheme. However, there is no relief for the real estate sector yet.
It may be noted that the council was expected to reduce GST on under-construction flats and residencies from 12 per cent to 5 per cent. However, a 7-member GoM has been constituted to discuss the matter. The issue will be discussed in the next council meet. Finance minister Arun Jaitley had earlier held low GST collections responsible for the ailing sector.
Addressing the press after the meet, Jaitley said, “A committee has been set up to consider real estate GST rates, a consensus is yet to be achieved”. Apart from real estate, a GoM has been constituted for the lottery issue as well.
As of now, 12 per cent GST is levied 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, no GST is levied on buyers of real estate properties for which completion certificate has been issued at the time of sale.
The council hiked composition scheme limit to Rs 1.5 crore from April 1. People who opt for composition scheme will have to pay their tax quarterly but will now have to file their returns annually. The council also doubled the exemption from Rs 20 lakh to Rs 40 lakh which is expected to benefit MSMEs a lot.
Worth mentioning here is that the council, in its previous meeting on December 22, 2018, had rationalised the 28 per cent tax slab and reduced rates on 23 goods and services. The finance minister said in his address on Thursday that rates of other items will now only be rationalised when revenue increases.
Source- Times Now.