GOVT FORMS GOM FOR GST ISSUES IN REAL ESTATE
In News :
- Government has constituted a seven-member Group of Ministers (GoM) to boost the real estate sector under the GST regime. Deputy Chief Minister of Gujarat Nitin Patel will be the convener of the GoM.
- Finance Ministers of Maharashtra, Karnataka, Kerala, Punjab and Uttar Pradesh and the Panchayat Minister of Goa will be the members.
- The decision to form the GoM was taken at the GST Council meeting. It will analyse tax rate of GST and suggest a composition scheme for residential construction units.
- The panel will also look into the issue of the legality of inclusion or exclusion of land or any other ingredient in the composition scheme and suggest valuation mechanism.
- It will also examine various aspects of the GST levy on Transfer of Development Rights and development rights in a joint development agreement and suitable model.
- Currently, GST on the under-construction flats and houses is 12% whereas ready-to-move-in flats with a completion certificate attract no GST.
- There are also complaints about the builders not passing on the benefit of input tax credit to the consumers. The Council’s law and fitment committee will assist the panel. The officers from the Centre and states can also be invited in the committee for inputs, if required.
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